BBBY's current COI: "Under the Certificate of Incorporation, Bed Bath & Beyond’s capital stock consists of 900,000,000 shares of Common Stock and 1,000,000 shares of preferred stock, par value $.01 per share."

This is what they have. Where did you read that they are offering 900,000,000 shares?

Here is what they are offering:

(i) shares of the Company's Series A convertible preferred stock (the "Series A Convertible Preferred Stock"), (ii) warrants to purchase shares of Series A Convertible Preferred Stock and (iii) warrants to purchase the Company's common stock.

Preferred stock and preferred stock warrants are different than common stock shares. Preferred stock is not available for retail purchase at all. As opposed to an outright purchase of stock shares, stock warrant gives the holder the right to buy a share of a company for a specific price within a set window of time or on a specific date. Many companies offer warrants to raise capital.

If they intended to only dilute common stock shares, there would be absolutely no mention of preferred stocks and/or warrants.