Jun. 21 at 4:59 PM
$BMGL Let's ponder what its effect on the stock price may be? If there is a share swap with bitcoins, then doesn't it constitute a capital infusion, which would raise the company's assets and book value by up to
$1B, based on their announced agreement? In essence, the mentioned consortium will provide the company with up to 10k BTCs and receive shares in return. In this case, what can be the probable reason these new shareholders will inundate the market with these new shares, which may quickly deteriorate the valuation of their own shares, much more than an ordinary dilution due to any additional panic selling pressure? Ultimately, what they have would be worth less than the BTCs they rendered to the company. It doesn't sound like a reasonable trade unless I have overlooked something. So, in my opinion, this consortium's aim is likely to be a long-term investor, and they are unlikely to sell all their shares in the short term.
