I don’t have an answer for #1, but for #2, my only thought is that it’s different in that MSTR stock can be viewed as “shares pegged to bitcoin” where “pegged” is used loosely whereas an altcoin created how I mentioned doesn’t have a formal backing, thus the holders are really out of luck.
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?
nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z any thoughts?
Discussion
There is no pegging. Imagine if Saylor bought gold bars to keep in Microstrategy's treasury. Same concept.
Diluting MSTR can't dilute a gold bar and it doesn't dilute any bitcoin.