A crypto treasury's total asset base can expand while the underlying value backing each individual share declines, creating a hidden dilution risk for existing holders.
Selling newly issued shares at a price below the net assets attributable to each outstanding share dilutes current holders' claim on the treasury—even when the market prices of the held tokens remain unchanged. Conversely, issuing shares above that per-share net asset value produces the opposite effect, increasing the backing behind each share.
Crypto Treasury Share Issuance Can Dilute Holders Even as Total Assets Grow
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