Nobody should be exchanging their Bitcoin for MSTR or related products.

Microstrategy is creating investment products mainly targetted to specific institutionals as a speculative attack on the dollar and receiving Bitcoin in return with the fiat raised.

Yes, it issues stock which dilutes its value over time at points in the future.

Recommend listening to What Bitcoin Did #853 with Dylan LeClair from Aug 16, and Markets with Madison part 1&2 with Saylor from Oct 17, 20 to get a better understanding of how the flywheel works