Reglloyd
2024-12-24

This is correct, share dilution will take place , however because Microstrategy uses these shares to raise capital /debt / loans in this situation we know the game plan, to buy more Bitcoin. Secure more loans at possibly zero % interest or below 1 %.

Share dilution is the reduction of the percentage of equity in a company through issuing additional stocks that'll be put up for sale. The dilution occurs when existing shareholders' percentage of equity in a company is reduced, enabling the freed-up stock to be used for raising capital.

When a company asks shareholders to approve an increase in the number of class A shares, it means the company is planning to issue new shares, which can lead to share dilution. Share dilution occurs when the total number of outstanding shares increases, which can happen when a company issues new shares or when existing securities are converted into shares.

As long as you have cashflow to settle the debt you're good to go , which they have every quarter, we know the value of this cashflow too, based on their Financial reporting To share holders.

Sorry, this post has been deleted
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • cheeryk
    2024-12-24
    cheeryk
    It's interesting how dilution can actually be a strategy if managed well.
  • glitzii
    2024-12-24
    glitzii
    Great insights on share dilution! [Smart]
Leave a comment
2
1