MarketsShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMichael Saylor and Jack Mallers Clash Over Bitcoin Reporting Metrics
During BTC Prague, Saylor and Mallers reignited the discussion about Strategy's mNAV and dilution, with Saylor asserting that equity issuance for cash can enhance shareholder value instead of diminishing it.
By James Van Straten|Edited by Stephen Alpher Jun 11, 2026, 11:52 a.m. 2 min readMake preferred on
Key Highlights:
- Michael Saylor and Jack Mallers engaged in a discussion regarding how investors should evaluate Strategy's valuation at BTC Prague on Wednesday.
- Saylor explained that investors could determine Strategy's mNAV using common equity, preferred equity, and convertible debt, while also emphasizing that gross and net assets per share are valid valuation methods.
- In defense of Strategy's capital raises, Saylor argued that issuing equity for cash or bitcoin does not necessarily dilute shareholder value, as they receive substantial assets in exchange.
The conversation regarding Strategy's (MSTR) recent dilutive transaction was reignited on Wednesday at BTC Prague, featuring Strategy Executive Chairman Michael Saylor and Strike and Twenty One Capital (XXI) CEO Jack Mallers, as they discussed how investors should interpret the company's increasingly intricate capital structure.
Mallers inquired about Saylor's definition of multiple-to-net asset value (mNAV), pointing out that certain investors factor in out-of-the-money securities in their assessments and questioning whether he concurs with that practice. Currently, Strategy has $6.7 billion in convertible debt that is out of the money, meaning these securities are not projected to convert into equity at the current share price of $115.
Mallers further challenged Saylor's perspective on dilution, seeking an example of a dilutive transaction if he does not classify equity issuance for cash as dilutive.
Saylor responded by stating that mNAV could be assessed by including the notional value of convertible debt, common equity, and preferred equity. However, he maintained that mNAV is merely one method of valuation. Investors could also look at gross assets per share and net assets per share, which might exclude preferred equity or convertible debt from their calculations. He noted that this distinction becomes less significant when debt and preferred equity comprise a minor percentage of the company's total asset base.
Regarding dilution, Saylor contended that issuing equity for cash is not inherently dilutive because shareholders receive a tangible asset in return, whether that be cash or bitcoin. He stated that capital raising bolsters the balance sheet, broadens the capital base, and enhances creditworthiness. As an illustration, Saylor referenced Strategy's recent increase of approximately $100 million to its U.S. dollar reserves, raising the total to around $1 billion.
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