Strategy has announced its perpetual preferred equity has surpassed its convertible debt, with $8.36 billion in permanent capital now exceeding $8.21 billion in dated debt. This shift eliminates refinancing risk by swapping debt maturity deadlines for permanent dividend obligations, protecting its massive Bitcoin holdings from immediate forced sale. However, this restructuring introduces new risks: ongoing dividend payments require steady cash or continued equity sales. With $2.25 billion in reserves against $876 million in annual dividend commitments, Strategy faces roughly 30 months of financial runway at current rates. If equity markets become inaccessible or Bitcoin's price remains depressed, raising new capital could become impossible, leading to a cash shortfall and potential forced Bitcoin sales. The model is highly sensitive to Bitcoin price volatility; large declines in Bitcoin rapidly erode Strategy’s market value, making financing more difficult and potentially triggering a feedback loop of dilution, falling stock price, and inability to fund dividends. The primary risk is a slow deterioration—underperformance and shareholder dilution rather than immediate collapse—though a significant Bitcoin liquidation would have major implications for both the company and the wider crypto market.