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200 sats \ 4 replies \ @badabing 10 Sep 2022 \ parent \ on: MicroStrategy Raising $500M To Buy More Bitcoin bitcoin
But since he will just buy more bitcoin with it, it doesn't really dilute the other shares right? People who buy these new shares in reality buy bitcoin for MSTR. There will be more shares, but there will also be more bitcoin in the treasury.
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0 sats \ 3 replies \ @jp 10 Sep 2022
No, there will be more shares so the existing shareholders will be diluted by the latest issuance.
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125 sats \ 0 replies \ @Wumbo 10 Sep 2022
Got to love inflating shares in your own company to facilitate buying an asset that can not be inflated.
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0 sats \ 1 reply \ @badabing 10 Sep 2022
Mstr is just a bitcoin etf at this point, so that logic makes less sense.
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100 sats \ 0 replies \ @jp 10 Sep 2022
Dilution makes sense for existing investors if their overall value of their holdings has gone up. 10% of a company valued at 10M is worse than 8% of a company valued at 100M.
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