Looking for some understanding here.
I’ve seen the post circulating today where Microstrategy is aiming at selling up to $750M of Class A stock. New share issuance dilutes existing shareholders. However, I understand the bitcoin community seems to view this dilution as acceptable if all of the funds from the issuance go to purchasing more bitcoin (since they are counting on the long term asset appreciation to more than compensate for the dilution). Additionally, the hope is also that the stock price follows the asset appreciation of bitcoin, too.
I have a few questions though.
- What happens to the BTC if $MSTR goes bankrupt?
- How is this much different from an individual creating an altcoin, taking in fiat from the issuance of the coin, and turning around and using that fiat to buy BTC for themselves?
preston (npub1s5y…6q7z) any thoughts?
josh / Josh
npub1q5…9k3wr
2023-08-02 03:22:06
Author Public Key
npub1q54v6v50rsw536r0lulrftdyhlrq27q3da8k3u5kvqjnq55k263qr9k3wrSeen on
wss://relay.nostr.bandPublished at
2023-08-02 03:22:06Event JSON
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"content": "Looking for some understanding here.\n\nI’ve seen the post circulating today where Microstrategy is aiming at selling up to $750M of Class A stock. New share issuance dilutes existing shareholders. However, I understand the bitcoin community seems to view this dilution as acceptable if all of the funds from the issuance go to purchasing more bitcoin (since they are counting on the long term asset appreciation to more than compensate for the dilution). Additionally, the hope is also that the stock price follows the asset appreciation of bitcoin, too.\n\nI have a few questions though.\n- What happens to the BTC if $MSTR goes bankrupt?\n- How is this much different from an individual creating an altcoin, taking in fiat from the issuance of the coin, and turning around and using that fiat to buy BTC for themselves?\n\nnostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z any thoughts?",
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