Blockstream CEO Adam Back believes that MicroStrategy (MSTR) stock is still undervalued, despite its impressive 488% year-to-date increase. Back is confident that shorting MSTR will not be successful because he sees the stock as being cheap compared to its Bitcoin holdings. He also considers buying MSTR stock as a low-risk opportunity, especially when compared to more complex financial products like 2x ETFs which can lose value during periods of sideways trading.
Back advises against buying Bitcoin calls, as they can expire worthless if not timed correctly. Options buyers can lose their premium if the Bitcoin price remains below the strike price by the expiration date. Unlike Bitcoin ETFs, MicroStrategy provides leveraged exposure to Bitcoin without suffering from decay issues caused by compounding effects, making it an attractive option for those seeking leveraged Bitcoin exposure.
MicroStrategy, based in Virginia, saw its shares rise by nearly 12% on Friday. Back’s faith in the company’s stock stems from his belief that it is still undervalued relative to its Bitcoin holdings. He argues that the stock is a safer bet compared to more complex financial instruments that can lose value over time, especially during periods of market stagnation.
Back’s confidence in MSTR stock comes from its unique position in providing leveraged exposure to Bitcoin without the decay issues seen in some ETF products. He believes that the stock offers a balanced option for investors seeking exposure to Bitcoin, without the risks associated with more sophisticated financial products.
Despite the impressive gains MicroStrategy has seen this year, Back believes that the stock is still “stupidly cheap” and undervalued. He is convinced that those shorting the stock will fail, and that buying MSTR stock offers a low-risk opportunity for investors seeking exposure to Bitcoin. With its recent surge in price, it seems that MicroStrategy is continuing to attract attention from investors looking to capitalize on the growing interest in Bitcoin and cryptocurrency investments.
