Saylor, Mallers clash over Strategy mNAV and dilution at BTC Prague

Strategy Executive Chairman Michael Saylor and Strike and Twenty One Capital (XXI) CEO Jack Mallers renewed a debate over Strategy’s bitcoin reporting metrics, including multiple-to-net asset value (mNAV) and dilution, at BTC Prague on Wednesday. According to CoinDesk, Mallers questioned how mNAV should treat out-of-the-money securities, noting Strategy has $6.7 billion of convertible debt that is out of the money at the current $115 share price. Saylor said mNAV can include common equity, preferred equity and convertible debt, but argued gross assets per share and net assets per share are also valid. He said issuing equity for cash or bitcoin is not inherently dilutive, citing about $100 million added to dollar reserves, bringing them to roughly $1 billion.