Michael Saylor and Jack Mallers clashed over how to measure Strategy’s valuation at BTC Prague on Wednesday. Saylor defended the company’s use of multiple-to-net-asset value (mNAV) and argued that equity issuance for cash or bitcoin is not dilutive because shareholders receive tangible assets. Mallers questioned whether out-of-the-money convertible debt should be included in mNAV calculations and challenged Saylor to define a dilutive transaction. Saylor responded that mNAV is just one framework; investors can also use gross or net assets per share, and that capital raises strengthen the balance sheet. Strategy holds nearly $1 billion in cash and has $6.7 billion in out-of-the-money convertible debt. The debate highlights ongoing investor confusion over Strategy’s complex capital structure and its bitcoin treasury strategy.

Key facts

• Saylor argued equity issuance for cash or bitcoin is not dilutive.
• Mallers questioned including out-of-the-money convertible debt in mNAV.
• Strategy holds $6.7B in out-of-the-money convertible debt.
• Saylor suggested gross and net assets per share as alternative metrics.
• Debate occurred at BTC Prague on Wednesday.

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