Techdamentals
Oct 30, 12:55 PM
$SBET SharpLink Gaming converted itself into an ether treasury company, raising capital through share sales to build a position in ether, the same structural approach Strategy used to build its 848,517 bitcoin position.
The model depends on a company's shares trading above the value of the crypto backing them. When that premium narrows or disappears, issuing more shares to acquire more coins dilutes existing holders rather than growing their stake, exactly what Strategy's own disclosures showed happening to bitcoin per share this year.
Strategy's stock-to-asset premium is now roughly at parity with its bitcoin holdings, down from about four times at the last cycle's peak, a compression that matters to any company running this playbook.
Full explainer, plain English: https://youtu.be/KihM8vYe-oo
Educational, not advice.
https://techdamentals.com/newsletter/is-microstrategy-worth-more-than-its-bitcoin?ref=st
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