An extended bear market could test these models. If Bitcoin falls and shares trade at or below NAV, debt‑heavy firms might struggle to refinance when notes come due.
That could force them to sell Bitcoin into a downtrend, pushing prices lower. Smaller companies without Strategy’s scale will face higher borrowing costs and tougher terms.
During a recession, margin calls and forced sales may cascade throughout the market, although most of these companies use equity financing mainly.