Meta Platforms shares fell roughly 5.5% on June 5, closing around $593 after a report from the Financial Times suggested the company was weighing a massive equity offering to fund its AI infrastructure buildout. The intraday slide reached as deep as 7% at one point, erasing an estimated $90 billion to $115 billion in market value before buyers stepped in to limit the damage.

Meta’s spokesperson called the FT report “pure speculation,” adding that no banks have been appointed and that any discussions about funding strategies remain preliminary.

The dilution fear is real

Alphabet completed an $85 billion equity sale earlier that same week, establishing a new benchmark for how much capital Big Tech is willing to raise to feed the AI machine. When Meta’s name surfaced as the next potential issuer, the pattern recognition kicked in immediately.

Meta’s capital expenditure guidance for 2026 already sits between $125 billion and $145 billion. That range was revised upward in April from the prior $115 billion to $135 billion window, with the company citing escalating memory costs and an expanded data-center footprint for AI workloads.

The math problem for shareholders is straightforward. If Meta funds that spending through equity issuance rather than cash flows and debt, existing ownership stakes get diluted. Even the rumor of dilution can crater a stock, which is exactly what happened.

Strong earnings, stronger spending

Meta’s underlying business is performing exceptionally well. First-quarter 2026 revenue came in at $56.31 billion, a 33% increase year-over-year. AI-driven improvements to ad engagement have been a meaningful contributor to that growth, meaning the very technology Meta wants to spend aggressively on is already paying dividends.

Meta’s situation also highlights a broader tension across Big Tech. These companies spent years buying back shares to boost earnings per share and reward investors. Now they’re potentially reversing course, issuing new shares to fund infrastructure that won’t generate revenue for years.

What this means for crypto and AI infrastructure

The massive data-center buildout that Meta, Alphabet, and their peers are pursuing requires enormous amounts of energy. Data centers and crypto mining operations often compete for the same power resources, the same real estate, and in some cases the same GPU hardware. When Big Tech raises $85 billion here and potentially tens of billions more there, it reshapes the supply dynamics for infrastructure that crypto miners also depend on.

The fact that a single unconfirmed report about a potential equity raise can wipe out more than $90 billion in market cap tells you everything about how sensitive markets are to financing risk right now.