Strategy’s Bitcoin Metrics Under Fire as Saylor and Mallers Trade Criticism

Here’s another refined rewrite with a slightly sharper, more concise financial-news style:

Debate over Strategy’s mNAV framework and concerns about dilution has resurfaced, with Michael Saylor arguing that issuing equity for cash is ultimately value-accretive rather than dilutive for shareholders.

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

Mallers questioned Saylor’s definition of multiple-to-net asset value (mNAV), noting that some investors include out-of-the-money convertible securities in their calculations, and asked whether Saylor supports that approach. Strategy currently holds roughly $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 about $115.

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

Saylor said mNAV can be measured using multiple frameworks, including ones that incorporate common equity, preferred equity, and the notional value of convertible debt. However, he emphasized that mNAV is only one lens for valuation. Other approaches, such as gross or net asset value per share, may exclude certain liabilities, including convertibles or preferreds. He added that these differences are less meaningful when such instruments represent a small share of the balance sheet.

On dilution, Saylor argued that issuing equity for cash is not inherently negative because shareholders receive a real asset in return. He said it strengthens the balance sheet, improves flexibility, and enhances creditworthiness. As an example, he cited Strategy’s recent addition of roughly $100 million in dollar reserves, bringing total cash holdings to about $1 billion.

Meanwhile, broader market commentary continues to question whether 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 alternative explanations may better fit the data.