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Analysis Explains How Growing Crypto Treasuries Can Dilute Per-Share Holdings
(3 hours ago) · 1 source · Summarized by CryptoBipto
An analysis explores the counterintuitive dynamic where companies that accumulate more cryptocurrency in their treasuries may actually reduce the amount of crypto backing each outstanding share. This typically occurs when companies issue new shares to fund crypto purchases, diluting existing shareholders' per-share exposure.
WHY IT MATTERS
When a company buys cryptocurrency and holds it on its balance sheet, some investors treat the company's stock almost like a way to own that crypto indirectly.
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SOURCES
- thedefiant.io
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