Has anyone ever had an orchid do this?

So I got a bunch of common phalaenopsis orchids for 5 bucks each cause they didnt currently have flowers on them and one of them started putting out this bud looking thing so i figured "hey thats great! a new flower!" but now i am almost completely certain it is making another orchid plant.

should I tie a little bit of damp sphagnum around it and divide it when it gets bigger?
Neat! I dont really know anything about orchids yet so I had no idea they did that
I guess loosely wrapping some damp sphag around it wouldnt hurt, hey?