#What is the dispute between Michael Saylor and Jack Mallers?
The disagreement between Michael Saylor and Jack Mallers centers on how shareholders of Bitcoin treasury companies assess their stakes. Saylor, the executive chairman of Strategy—formerly MicroStrategy—defends the use of Bitcoin-per-share as a vital metric for evaluating performance. Conversely, Mallers, CEO of XXI Capital, argues that emphasizing Bitcoin-per-share obscures the effects of shareholder dilution caused by issuing new shares to fund Bitcoin acquisitions.
#Why does this matter for shareholders?
This disagreement is essential as it impacts how we should value a whole category of public companies focusing on cryptocurrency investments. Strategy recently raised $2.1 billion, with an astonishing 86% resulting from dilutive stock issuances. This raises significant questions about ownership percentages and the fairness of the deals shareholders are getting.
#How do Saylor and Mallers view Bitcoin-per-share differently?
Saylor believes that Bitcoin-per-share, along with related metrics, is critical for evaluating Bitcoin-focused companies. He argues that traditional earnings metrics do not effectively represent the value of accumulating a deflationary asset like Bitcoin. For companies building Bitcoin treasuries, the primary focus should be on the amount of Bitcoin backing each share, rather than quarterly revenues. Mallers takes a different stance. He has indicated that XXI Capital will de-emphasize Bitcoin-per-share as a reporting metric, which he believes inadequately reflects shareholder dilution. He points to Strategy’s recent capital raise, where 86% of equity was dilutive, as evidence supporting his perspective.
#What are the different strategies for Bitcoin investments?
Strategy has made its commitment to a Bitcoin-first approach clear since rebranding from MicroStrategy in February 2025. Its strategy is aggressive: raise capital through debt and equity, purchase Bitcoin, and repeat the cycle.XXI Capital, launched through a SPAC and supported by robust investors, holds between 42,000 and 43,500 BTC at inception. The key distinction lies not just in the size, but in the dialogue surrounding their financial strategies. While Strategy focuses on Bitcoin-per-share as a performance benchmark, XXI Capital emphasizes metrics that provide clearer insights into shareholder dilution.
#How does dilution impact investors?
The significance of the 86% dilution figure from Strategy's latest funding round is stark. For shareholders, this implies that nearly nine out of every ten dollars raised originated from new shares issued, which directly diminishes their ownership stake. This situation's implications largely depend on Bitcoin's price trajectory and whether the newly acquired Bitcoin outweighs the dilution on a per-share basis.
Mallers' criticism about abandoning Bitcoin-per-share grows stronger in such scenarios. By prioritizing metrics that address dilution, XXI Capital conveys to investors that they should evaluate performance based on immediate, visible indicators of value, rather than relying solely on future Bitcoin appreciation to justify their capital structure.