Saylor and Mallers Clash Over Strategy’s Bitcoin Valuation Metrics

Michael Saylor and Jack Mallers publicly debated Strategy’s bitcoin reporting metrics at BTC Prague on Wednesday, renewing questions about how investors should value the company’s increasingly complex capital structure. The exchange centered on multiple-to-net asset value, or mNAV, and whether securities such as out-of-the-money convertible debt should be included in calculations.

The discussion matters because Strategy has become one of the most closely watched corporate bitcoin holders, and its valuation depends not only on its bitcoin position but also on how investors interpret equity, preferred shares and convertible debt. For shareholders and market observers, the debate highlights a broader issue for bitcoin treasury companies: traditional valuation measures can become harder to read as balance sheets add layers of financing.

Mallers, CEO of Strike and Twenty One Capital, asked Saylor how he defines mNAV and challenged the idea that issuing equity for cash is not dilutive. He also pressed for an example of what Saylor would consider a dilutive transaction if raising capital through equity does not qualify.

Saylor responded that mNAV can be calculated using the notional value of convertible debt, common equity and preferred equity, but said it is only one way to evaluate Strategy. He argued that investors can also look at gross assets per share and net assets per share, with some approaches excluding preferred equity or convertible debt from the calculation.

On dilution, Saylor said issuing equity for cash or bitcoin is not inherently harmful to shareholders because the company receives tangible assets in return. He argued that capital raises can expand the company’s capital base, strengthen its balance sheet and improve creditworthiness, pointing to Strategy’s recent addition of about $100 million to its U.S. dollar reserves, bringing those reserves to roughly $1 billion.