Blockstream's CEO Adam Back commented on the stock premium of MicroStrategy, presenting his perspective on the risks and benefits associated with investing in the company.
MicroStrategy's Stock Premium
Adam Back stated that the current premium on MicroStrategy (MSTR) shares is justified considering the rapid reduction of risk exposure for investors associated with the company's operations. He noted that over the past 16-18 months, MSTR has had a tendency to double its Bitcoin per share.
Growth Dynamics of Bitcoin per Share
Back pointed out that at the current growth rate of Bitcoin per share, in about a year and a half, MSTR could reach levels equivalent to 1 mNAV, significantly reducing investor risk. Currently, MSTR's premium sits at about 1.7x based on basic shares and around 1.9x when considering diluted shares.
Market Volatility and Risk
Discussing volatility in the market, Back mentioned the Japanese investment firm Metaplanet, which experienced more significant fluctuations with its mNAV but has generally managed to bounce back after each drop.
Adam Back emphasized the importance of assessing premiums when investing in Bitcoin treasury companies, highlighting the potential risks and opportunities.
