MicroStrategy's business model essentially carries strong Ponzi-like characteristics, relying on continuous debt issuance, convertible bond offerings, and equity financing to roll over old debt—using new money to fill old holes. This kind of model is inherently suited only for bull markets. In a bull market, Bitcoin prices keep rising, the balance sheet looks great, financing costs are low, market sentiment is high, and capital flows in like water. Old debts are easily rolled over, and they can even accelerate leveraging. But once a bear market hits, the story falls apart: Bitcoin prices drop, market risk appetite plummets, new financing channels dry up quickly, while high interest rates and maturing debt don’t just disappear. At this point, it’s either default or being forced to sell Bitcoin to repay debt, creating a vicious cycle. This is almost identical to the real estate model back in the day: high leverage, asset revaluation driving credit expansion, borrowing more and buying more during the rise, and during the fall, valuations collapse, financing dries up, and it instantly turns from a cash cow into a liquidation machine. MicroStrategy is now standing at this critical juncture—bull markets are its paradise, bear markets are its graveyard.