After the fact: Why the crypto market crashed – The case of MSTR's preferred stock fundraising setback As the pioneer of the 'Bitcoin Treasury Company' model, Strategy (formerly MicroStrategy, $MSTR) is facing an unprecedented market test. In August, Strategy's stock price dropped by 16.8%, wiping out most of the premium the company had long enjoyed relative to its Bitcoin holdings. MSTR originally planned to raise funds through preferred stock to purchase Bitcoin, but recently only managed to secure $47 million, far below expectations. To make up for the shortfall, the company restarted its common stock issuance plan, breaking its previous promise to limit dilution. This strategic reversal not only hit investor confidence but also posed a threat to the entire Bitcoin treasury model. Analysts point out that when Strategy chooses to issue more shares at a low mNAV, it could trigger a 'negative flywheel': falling stock prices weaken the ability to buy Bitcoin, further eroding market confidence, and accelerating the compression of the premium. This strategic reversal not only hit investor confidence but also posed a threat to the entire Bitcoin treasury model. Currently, companies following the Strategy model collectively hold over $108 billion worth of Bitcoin, accounting for 4.7% of the total supply. If Strategy's premium advantage collapses, the sustainability of this model will be comprehensively questioned. It could also lead to a major challenge to the entire logic of the crypto-equity concept.