I may be naive but I've never understood this. If a company has...

I may be naive but I've never understood this. If a company has an asset worth $100M for example, it's still going to be worth $100M regardless of whether there are 10 or 10000 SOI.

Say you buy the company when it is worth $20M and it five bags to $100M.

Scenario A - 10 SOI: you have $2M to spend on shares, this gets you 1 share. Company 5 bags to $100M so your investment is now worth $10M.
Scenario B - 10,000 SOI: you have $2M to spend on shares, this gets you 1,000 shares. Company 5 bags to $100M so your investment is now worth $10M.

Would really appreciate it if someone could explain why soi are seen as a massive inhibitor to SP increase. I often see people throw around "too many soi" on HC with no explanation.

Thanks!