MicroStrategy shareholders have a unique perspective on the concept of dilution. While dilution is typically viewed as a negative for shareholders, many MicroStrategy investors see it as a positive development. According to James Van Straten, a senior analyst at CoinDesk, shareholders are celebrating dilution because it means that MicroStrategy is using the proceeds to buy bitcoin.
Van Straten explains, “Typically, when shareholders get diluted, this is a bad thing. However, as a MicroStrategy shareholder, I celebrate being diluted as I know MicroStrategy are going out and buying bitcoin, which increases the bitcoin per share as a company which is accretive for shareholder value.”
This unique perspective highlights the growing trend of companies using their cash reserves to invest in bitcoin, a move that is seen as a way to increase shareholder value in the long run.
As more companies follow in MicroStrategy’s footsteps, shareholders may start to see dilution in a new light, viewing it as a strategic move that benefits the company and its investors in the long term.
