Saylor vs Mallers: Dispute Erupts Over How Strategy Reports Bitcoin Holdings

Here’s a more streamlined and slightly sharper rewrite:

Debate over Strategy’s mNAV methodology and concerns about dilution has intensified again, with Michael Saylor arguing that issuing equity for cash ultimately strengthens, rather than weakens, shareholder value.

The discussion took place at BTC Prague, where Strategy Executive Chairman Michael Saylor and Strike and Twenty One Capital (XXI) CEO Jack Mallers examined how investors should evaluate the company’s increasingly complex capital structure.

Mallers questioned Saylor’s approach to multiple-to-net asset value (mNAV), noting that some investors include out-of-the-money convertible securities in their calculations, and asked whether he agrees with that methodology. Strategy currently has about $6.7 billion in convertible debt that is out of the money, meaning it would not convert into equity at the current share price of roughly $115.

He also challenged Saylor’s stance on dilution, asking what would qualify as a dilutive transaction if equity issuance for cash is not considered dilutive.

Saylor responded that mNAV can be assessed through several frameworks, including versions that incorporate common equity, preferred equity, and the notional value of convertible debt. However, he stressed that mNAV is only one valuation lens, alongside measures like gross and net asset value per share, which may exclude certain liabilities. He added that these distinctions matter less when such obligations make up a relatively small portion of the balance sheet.

On dilution, Saylor argued that issuing equity for cash is not inherently negative, since shareholders receive a tangible asset in return. He said it strengthens the balance sheet, increases flexibility, and improves credit quality. As an example, he pointed to Strategy’s recent addition of roughly $100 million in cash reserves, bringing total liquidity to about $1 billion.

Elsewhere, analysts continue to debate whether Bitcoin ETF outflows are being driven by capital rotation into upcoming IPOs such as SpaceX and Anthropic, though some observers, including Sygnum’s Fabian Dori, suggest the data may point to alternative explanations.