Michael Saylor says Mnav is just one metric as Strategy dilution debate continues

At BTC Prague, Michael Saylor and Jack Mallers renewed a debate over Strategy's mNAV and dilution, weighing how investors should assess the company's increasingly complex capital structure. Mallers pressed Saylor on how he defines multiple-to-net asset value (mNAV), noting some investors include out-of-the-money securities in their calculations and asking whether he agrees.

Strategy currently holds $6.7 billion of convertible debt that is out of the money, meaning those securities are not expected to convert into equity at the current $115 share price. Saylor said mNAV can be calculated by including the notional value of convertible debt, common equity and preferred equity, but he described mNAV as only one valuation framework.

Investors can instead look at gross assets per share or net assets per share, measures that may exclude preferred equity or convertible debt. He added the distinction is less significant when debt and preferred equity make up only a small portion of the company's asset base.

michael saylor, jack mallers, mnav, strategy, convertible debt, preferred equity, out-of-the-money, dilution, gross assets, net assets