Blockstream's CEO Adam Back has stated that MicroStrategy shares are still 'stupidly cheap' despite their substantial value increase this year.
Adam Back's Opinion
Adam Back is convinced that shorting MicroStrategy's stock will not succeed as he believes the stock is still undervalued when compared to the company's Bitcoin holdings.
Comparison with Financial Products
Back noted that investing in MSTR shares is less risky compared to products like 2x ETFs, intended to deliver double the daily Bitcoin performance but tend to lose value in sideways market trading. For instance, if Bitcoin's price rises 1% one day and falls the next, such ETFs might still end up in the red.
MSTR vs Bitcoin ETFs
Unlike Bitcoin ETFs, MicroStrategy offers leveraged Bitcoin exposure without suffering from 'decay' issues caused by compounding effects, making the company's stock a more balanced option for Bitcoin investment.
In conclusion, MicroStrategy's stock rose by nearly 12% last Friday, and Adam Back remains confident in its future growth potential due to its undervaluation relative to the company's Bitcoin assets.
