Here’s a fresh rewrite with a tighter, more neutral market-report tone:
The debate over Strategy’s mNAV calculation and the issue of dilution has resurfaced, with Michael Saylor maintaining that issuing equity for cash ultimately enhances, rather than reduces, shareholder value.
The exchange took place at BTC Prague, where Strategy Executive Chairman Michael Saylor and Strike and Twenty One Capital (XXI) CEO Jack Mallers discussed how investors should interpret the company’s increasingly complex capital structure.
Mallers questioned Saylor’s approach to multiple-to-net asset value (mNAV), pointing out that some investors factor in out-of-the-money convertible securities, and asked whether he agrees with that methodology. Strategy currently holds around $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 approximately $115.
He also pressed Saylor on the concept of dilution, asking what would constitute a dilutive transaction if equity issuance for cash is not viewed as dilutive.
Saylor replied that mNAV can be calculated using multiple frameworks, including those that incorporate common equity, preferred equity, and the notional value of convertible debt. However, he said mNAV is only one of several valuation tools, alongside metrics such as gross and net asset value per share, which may exclude certain liabilities. He added that these distinctions are less important when such obligations represent a small portion of the company’s overall balance sheet.
On dilution, Saylor argued that raising equity for cash is not inherently negative, as it provides shareholders with a real asset in return. He said it strengthens the balance sheet, improves financial flexibility, and enhances credit standing. As an example, he cited Strategy’s recent addition of roughly $100 million in cash reserves, taking total liquidity to about $1 billion.
Meanwhile, market observers continue to debate whether recent Bitcoin ETF outflows are being driven by capital rotation into upcoming IPOs such as SpaceX and Anthropic, though some analysts, including Sygnum’s Fabian Dori, argue the flow data may point to other factors.
