dilution

If the price drops, the issuer may face credit, liquidity or dilution risks, because it still has to make payments without selling its bitcoin holdings.

If the price drops, the issuer may face credit, liquidity, or dilution risks because it still has to make payments without selling its bitcoin holdings.

The market is enthusiastic despite the dilution triggered by raising 2 billion pounds in new equity, he adds.

One reason for lower target prices is to account for dilution from a $650 million equity raise, also announced with earnings.

Critics have raised concerns over the dilution of shares, increased “key man” risk and the size of the package.