{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T18:32:18Z","timestamp":1786732338904,"version":"build-2736575974"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>MicroStrategy Incorporated (now Strategy Inc) held 818,334 Bitcoin as of May 3, 2026, accumulated since August 2020 through a systematic program of issuing equity and convertible debt at premiums to the marked-to-market value of its Bitcoin reserves. I argue that the resulting equity premium is reflexive but contains its own dissolution: the issuance program that sustains the premium also dilutes the per-share economics that justify it, and the premium endogenously decays once issuance growth catches up with Bitcoin accumulation. Using daily data from January 2021 to May 2026, I document a five-regime structure. The premium averages 56.8 percent during the 2021 accumulation phase, falls to negative 4.0 percent during the 2022 bear market when issuance turned dilutive and halted, recovers modestly through 2023, and peaks at a mean of 106.5 percent during the 2024 post-ETF expansion. The premium then decays through 2025 and turns negative on November 13, 2025, exactly 358 days after the November 2024 peak, despite Bitcoin remaining elevated and the firm continuing to accumulate. The 2025 decompression is consistent with endogenous self-limitation: shares grew 42.5 percent over the decompression subperiod, yet Bitcoin-per-share grew only 28.6 percent, meaning the pershare accretion was only two-thirds of the share growth rate, less than half the equivalent ratio realized during the preceding expansion phase. The mechanism is also visible in the per-dollar wealth-transfer ratio across the two post-ETF subperiods. The expansion subperiod converted $45.3 billion of issuance proceeds into $28.5 billion of NAVbenchmark transfer to existing shareholders, an effective accretion of 63 cents per dollar raised. The decompression subperiod converted $34.1 billion into $13.6 billion of transfer, only 40 cents per dollar-same firm, similar dollar volume, nearly two-thirds the perdollar accretion. The findings characterize MicroStrategy as a new corporate form whose premium is reflexively sustained but mechanically self-extinguishing under sustained issuance, and whose 2025 to 2026 decay is the steady-state consequence of its own capitalstructure policy rather than a bear-market shock.<\/jats:p>","DOI":"10.2139\/ssrn.6734402","type":"posted-content","created":{"date-parts":[[2026,5,8]],"date-time":"2026-05-08T13:02:31Z","timestamp":1778245351000},"source":"Crossref","is-referenced-by-count":0,"title":["Issuing Into the Premium: Reflexivity and Endogenous Self-Limitation in MicroStrategy's Bitcoin Accumulation"],"prefix":"10.2139","author":[{"ORCID":"https:\/\/orcid.org\/0009-0005-8477-9393","authenticated-orcid":true,"given":"Boon Chuan","family":"Lim","sequence":"first","affiliation":[],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"78","container-title":[],"original-title":[],"deposited":{"date-parts":[[2026,8,14]],"date-time":"2026-08-14T17:51:51Z","timestamp":1786729911000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6734402"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6734402","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}