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.
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