Fleet upgrades funded with new shares are paid for by the old ones

Miners have to keep upgrading their machines just to hold their share of the network. When those upgrades are funded by issuing new shares, existing holders are paying for the treadmill, and the operation can grow while each share's claim on it shrinks.

Growth that dilutes

A bigger fleet means more computing power and, all else equal, more coins mined. If the fleet was paid for with new shares, the coins per share may not rise at all. The company reports growth; the owner of each share sees none.

It is the most common way the economics of mining reach shareholders, and it is easy to miss in the headline numbers.

What I'm watching

• Coins mined per share, rather than in total
• Share count growth against computing power growth
• How upgrades are funded: cash flow, debt or equity

Where I stand

Short, on fleet growth that is outrunning the per-share economics. The company is expanding; the shares are being diluted to pay for it.

What would change my mind

Upgrades funded from operating cash flow. That would mean the treadmill is paying for itself, and growth would finally reach each share.