{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T14:12:24Z","timestamp":1785334344792,"version":"3.55.0"},"posted":{"date-parts":[[2026]]},"group-title":"SSRN","reference-count":0,"publisher":"Elsevier BV","license":[{"start":{"date-parts":[[2026,1,1]],"date-time":"2026-01-01T00:00:00Z","timestamp":1767225600000},"content-version":"unspecified","delay-in-days":0,"URL":"https:\/\/www.uspto.gov\/ip-policy\/copyright-policy\/copyright-basics"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"abstract":"<jats:p>Purpose: This paper examines when a Bitcoin treasury company can become a contingent forced seller despite remaining solvent on a mark-to-market asset basis. Design\/methodology\/approach: The paper reconstructs Strategy Inc.\/MicroStrategy's financing structure from primary SEC filings and dividend disclosures. It models three linked channels: common-equity issuance gated by the market-to-net-asset-value premium, convertible notes that become cash or refinancing obligations below conversion thresholds, and preferred-stock distributions funded by cash, issuance or Bitcoin sales. Findings: The preferred stack implies a forward break-even Bitcoin appreciation rate of about 2.6 per cent at the disclosed cost basis, close to management's own stated comfort figure of about 2.3 per cent. Management also discloses a break-even market-to-NAV multiple of about 1.22, below which it states that selling Bitcoin is more accretive than issuing equity; this is the gating mechanism the paper models. The US$900 million reserve covers roughly six months of the forward obligation, and the 2029-note repurchase shows that convert, reserve and preferred channels draw on one funding pool. Research limitations\/implications: The study is a single-firm clinical analysis of an intentionally extreme case, and its threshold levels are point-in-time. The joint-collapse framework, however, applies to any firm that funds digital-asset reserves through the same three channels. Practical implications: The framework gives risk managers, creditors and analysts a diagnostic for monitoring capital-structure cliffs by tracking the premium, convertible schedule and dividend coverage as one coupled system. Originality: The paper contributes a joint-collapse framework for Bitcoin treasury firms: financing capacity contracts jointly, not sequentially, because all three channels share the Bitcoin price and the equity premium as state variables.<\/jats:p>","DOI":"10.2139\/ssrn.6882258","type":"posted-content","created":{"date-parts":[[2026,7,29]],"date-time":"2026-07-29T13:45:53Z","timestamp":1785332753000},"source":"Crossref","is-referenced-by-count":0,"title":["Selling One to Buy Thirty: Forced-Selling Channels in a Bitcoin Treasury Firm"],"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":[[2026,7,29]],"date-time":"2026-07-29T13:45:53Z","timestamp":1785332753000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.ssrn.com\/abstract=6882258"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026]]},"references-count":0,"URL":"https:\/\/doi.org\/10.2139\/ssrn.6882258","relation":{},"subject":[],"published":{"date-parts":[[2026]]},"subtype":"preprint"}}