Saylor Defends MSTR's Approach to Dilution and Net Asset Value

Michael Saylor, executive chairman of Strategy (MSTR), defended his company's approach to calculating dilution and net asset value during a panel at the BTC Prague event.

Saylor argued that equity issuance becomes 'massively accretive' when liabilities and asset purchases are correctly factored in, rather than dilutive. He pointed out that investors should consider the use of funds and the post-liability transaction price relative to net assets per share when judging whether an equity-for-asset swap leads to dilution or accretion.

Saylor also clarified that Strategy's mNAV metric has limitations and does not show the full financial picture, as stated in the company's 8-K and 10-Q filings. He contrasted this with classic dilutive deals, such as overpaying for an intangible asset that is ultimately written down.