Part 2/5:
The key innovation is the concept of "BTC yield" - measuring a company's performance not by traditional metrics like earnings per share, but by the amount of Bitcoin held per fully diluted share. This flips the traditional corporate finance model on its head, as companies now seek to maximize their Bitcoin holdings through strategic equity and debt issuance, rather than minimizing capital and returning it to shareholders.
The Power of Dilution
The announcement of MicroStrategy's $42 billion capital raise, including the largest-ever at-the-market (ATM) equity offering, exemplifies this new approach. Traditionally, such dilution would crater a company's stock price. But for MicroStrategy, its shares actually outperformed Bitcoin on the day, as shareholders cheer the company's ability to rapidly increase its Bitcoin holdings per share.
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