There's an interesting thing—recently, senior executives of a publicly listed company mainly engaged in Bitcoin mining are planning a big move. Chairman Tom Lee proposed to increase the company's authorized shares from the current 500 million to 50 billion shares, and he himself admits this is a "very aggressive" adjustment.
Why do this? Lee's explanation is that expanding the authorized share count can give the company more operational flexibility—whether it's for financing, mergers and acquisitions, or stock splits. The key point is that he pointed out if the price of cryptocurrencies like Ethereum skyrockets, the company's stock price will also surge. At that point, if the stock price becomes too high, it might not be very reasonable; stock splits can help keep the price within a more comfortable range.
The market reaction was quite positive. On the Friday when the news was announced, the company's stock rose 14%, closing at $30.93 at 2:48 PM Eastern Time. From this reaction, it seems investors are quite supportive of this idea. In simple terms, the company is preparing for potential future capital moves.
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ProposalDetective
· 01-03 17:03
500 billion shares? Bro, you're trying to leave yourself enough ammunition, smart.
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When the coin price surges, the stock price follows suit. Splitting shares is an old trick, but can it really be implemented this time?
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A 14% increase is good, but it feels like it's paving the way for subsequent actions. Must keep an eye on it.
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What is a "comfortable range"? Basically, it means you can do whatever you want.
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A 10x authorized limit is indeed aggressive, but the market is willing to buy it. Interesting.
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Tom Lee's move is definitely preparing for a major event.
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Stock splits sound like a noble reason, but in reality, it's about diluting risk and increasing financing options.
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This is the "ready to expand at any time" mentality of the Web3 era. Got it.
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Public companies in the crypto world are just good at playing the game. This way, they have more channels for fundraising.
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CryptoTherapist
· 01-03 16:09
honestly this screams dilution panic dressed up as forward-thinking... let me unpack the psychological resistance here. tom lee's basically saying "we need ammo before btc moons" which tbh is textbook market anxiety masking as strategy. 5 billion to 500 billion? that's not flexibility, that's trauma-driven decision making. your portfolio's showing classic signs of pre-pump anxiety ngl
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RegenRestorer
· 01-03 09:17
50 billion shares? This guy really dares to think about it, the dilution smell is a bit strong.
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NotSatoshi
· 01-02 23:50
This is a typical setup, waiting for the coin price to soar.
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AirdropHunterXiao
· 01-02 23:49
50 billion shares? Bro, are you planning to dilute to the bottom? Is this the prelude to harvesting the chives...
You believe the stock price will rise 14%? I think it's just afraid that the coin price will surge to a new high and be forced to split, so it's better to enlarge the market early for safety.
I've seen this kind of operation too many times. They start off sounding good, but in the end, it's just continuous financing and dilution.
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ETHmaxi_NoFilter
· 01-02 23:36
50 billion shares? Dude, are you trying to wipe out retail investors or what? Diluting to the point where even your mom wouldn't recognize it.
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WinterWarmthCat
· 01-02 23:26
500 billion shares? This guy really dares to think, he's a bit crazy
I've heard the talk about stock splits many times, but the key is whether the coin price will really surge?
Oh my, both financing and mergers & acquisitions, is this stockpiling ammunition for a bull market?
A 14% increase is significant, but will this wave of authorized expansion cause severe dilution?
Tom Lee's move is well played, leaving himself enough room to maneuver
Such aggressive adjustments, retail investors should be cautious
Feels like paving the way for the next big move, will regulators pay attention?
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Tokenomics911
· 01-02 23:25
500 billion shares? Man, your level of aggressiveness must mean you're really optimistic about the market haha
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I'm just worried that after the split, the coin price will crash again, and then this move will backfire
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A 14% increase is quite impressive; the market still buys into this
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Tom Lee's recent moves are definitely paving the way for bigger actions later
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I just want to ask, will this share expansion dilute our small investors' holdings?
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Mining companies making such big moves show they still have confidence in the market's future
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The authorized shares went from 500 million to 50 billion, that's a pretty big step, brother
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Can stock splits keep the price within a comfortable range? I need to think about this some more
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Really playing hard, using authorized shares as leverage to influence market expectations
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When the coin price surges and stock prices follow, what do we do then? What about the risks?
There's an interesting thing—recently, senior executives of a publicly listed company mainly engaged in Bitcoin mining are planning a big move. Chairman Tom Lee proposed to increase the company's authorized shares from the current 500 million to 50 billion shares, and he himself admits this is a "very aggressive" adjustment.
Why do this? Lee's explanation is that expanding the authorized share count can give the company more operational flexibility—whether it's for financing, mergers and acquisitions, or stock splits. The key point is that he pointed out if the price of cryptocurrencies like Ethereum skyrockets, the company's stock price will also surge. At that point, if the stock price becomes too high, it might not be very reasonable; stock splits can help keep the price within a more comfortable range.
The market reaction was quite positive. On the Friday when the news was announced, the company's stock rose 14%, closing at $30.93 at 2:48 PM Eastern Time. From this reaction, it seems investors are quite supportive of this idea. In simple terms, the company is preparing for potential future capital moves.