Strategy Executive Chairman Michael Saylor defended the company’s Bitcoin-focused capital strategy at the BTC Prague conference, arguing that investors often misunderstand the difference between dilution and value creation.

Speaking during a digital credit panel, Saylor said that issuing new shares to acquire assets such as Bitcoin should not automatically be considered dilutive. Instead, he argued that investors should focus on whether those transactions increase net assets per share after accounting for liabilities.

“The idea that selling equity is dilutive is a misnomer,” Saylor said. According to him, raising capital and deploying it into valuable assets can create long-term shareholder value rather than reduce it.

The discussion centered around Strategy’s modified Net Asset Value (mNAV) metric, which the company uses to help investors evaluate its Bitcoin treasury strategy. Saylor explained that the metric includes market capitalization, net debt, and preferred equity, though he acknowledged that no single measure can fully capture a company’s financial position.

During the panel, Twenty One Capital CEO Jack Mallers challenged Saylor’s interpretation, arguing that issuing additional shares typically reduces existing ownership percentages. Saylor responded that dilution should be judged based on the quality and performance of the assets acquired with the new capital.

He contrasted productive investments with situations where companies overpay for assets that later lose value, saying those scenarios are more accurately described as shareholder dilution.

Saylor also defended Strategy’s preferred equity offerings, arguing that they are frequently mischaracterized as liabilities. He maintained that such instruments play a key role in funding the company’s Bitcoin acquisition strategy while preserving long-term shareholder value.

The debate highlights growing investor interest in Bitcoin treasury companies, which use public market financing to accumulate digital assets. As the sector continues to expand, questions surrounding dilution, valuation metrics, and capital allocation remain central to investor discussions.

Strategy remains the largest corporate holder of Bitcoin, making its financial strategy one of the most closely watched in both traditional finance and the cryptocurrency industry. While critics continue to question the company’s repeated capital raises, Saylor maintains that the ultimate measure of success is whether those transactions increase value per share over time.

As more companies adopt Bitcoin treasury strategies, the debate over dilution versus accretion is likely to remain a key topic for investors and analysts alike.