Dilution
The reduction in a shareholder's ownership percentage when new shares are issued.
Definition
Dilution occurs when a company issues new shares, reducing the percentage of the company that each existing share represents. In the context of Bitcoin treasury companies, dilution is a deliberate mechanism: if the company trades at an mNAV above 1x, issuing new shares at market price allows it to buy more Bitcoin per dollar raised than is 'diluted' away. The net result, measured in BTC per share, can be positive (positive BTC Yield). This is the cornerstone of the treasury 'flywheel'.
Related Terms
Mentioned in
- BlogCan a Bitcoin treasury company be forced to sell? Strategy's 2026 pivot
- BlogHow to start a Bitcoin treasury at your company (2026): a step-by-step guide
- BlogMicroStrategy's balance-sheet strategy: Strategy's financial engineering explained
- BlogHow to buy Twenty One (XXI) stock
- BlogmNAV explained: the key metric for valuing Bitcoin treasury companies
- BlogBTC Yield explained: the metric reshaping corporate accounting
- BlogBTC Yield: the metric redefining how we measure a company's value
Explore more on SatsIntel
From the concept to the real dataBTC-backed preferreds
Fixed income with Bitcoin exposure. STRK, STRF, STRC, STRD and SATA.
Ver sección →Treasuries directory
Companies applying this concept on their balance sheets. Holdings, mNAV and live ranking.
Ver sección →Spot Bitcoin ETFs
The 12 SEC-approved spot ETFs. Daily flows, fees and comparator.
Ver sección →More glossary terms
60 definitions from the corporate Bitcoin ecosystem: protocol, metrics, regulation.
Ver sección →Read this term in Spanish: versión en español →
Corporate Bitcoin, explained every week
Definitions, data and analysis on treasuries, ETFs and preferreds in your inbox. No spam.