josh on Nostr: Looking for some understanding here. I’ve seen the post circulating today where ...
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?
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?