Michael Saylor says Mnav is just one metric as Strategy dilution debate continues
Michael Saylor and Jack Mallers debated how to judge Strategy’s capital structure and dilution. Mallers questioned how to calculate mNAV, especially whether out-of-the-money convertible debt should be included; Strategy has about $6.7 billion of such debt. Saylor said mNAV can include common equity, preferred equity, and the notional value of convertibles, but it is only one framework. He argued investors can also look at gross or net assets per share, and the impact of debt or preferreds matters less when they are small relative to the asset base. On dilution, Saylor said issuing equity for cash is not automatically dilutive because shareholders receive assets in return, such as cash or bitcoin. He said capital raises can strengthen the balance sheet, improve creditworthiness, and expand the company’s capital base, citing Strategy’s recent addition of about $100 million to U.S. dollar reserves.
