Michael Saylor's MicroStrategy, whose stock price has tripled this year, topped Coinbase as the biggest crypto stock.
"MicroStrategy shareholders are a unique cohort. Typically, when shareholders get diluted, this is a bad thing," said CoinDesk senior analyst James Van Straten.On Wednesday, his company announced it would issue and then sell $21 billion of its own stock — a move that, for most any other publicly traded company — would prove disastrous for current shareholders.
MicroStrategy's rally"is a testament to investor confidence in the firm's accretive dilution strategy for bitcoin — wherein MicroStrategy leverages capital markets to buy bitcoin, diluting shares by issuing more, but accreting shareholder value via its bitcoin purchases," said Joe Consorti, head of growth at Theya.