Strategy Inc., previously known as MicroStrategy, is grappling with a financial crisis as its bitcoin-focused capital management strategy falters. The company currently holds $540 million in cash but is burdened with $640 million in annual dividend expenses, necessitating reliance on external capital markets. To address its financial challenges, Strategy Inc. plans to raise $19.5 billion in 2025 for debt refinancing. The company's stock has lost its premium over bitcoin net asset value, eliminating arbitrage opportunities and leading to share dilution. Additionally, MSCI may remove Strategy Inc. from its index by January 2026, which could trigger a $2.8 billion forced sell-off, exacerbating the financial strain. The sustainability of Strategy Inc.'s model is under scrutiny due to its dependence on volatile capital inflows and lack of internal cash flow.