Michael Saylor’s Strategy premium is not ‘unreasonable’: Adam Back
Adam Back says that since Strategy typically takes 16 to 18 months to double its Bitcoin per share, the premium on its stock is not “unreasonable.”
Blockstream CEO Adam Back says Michael Saylor’s Strategy (MSTR) stock premium is within reason, considering how quickly the firm doubles its Bitcoin per share, which reduces risk for investors.
“It turns out in the case of MicroStrategy it’s been 16 months, 18 months,” he told Bitcoin podcaster Stephan Livera at BTC Prague on Saturday, referring to the typical time it takes for Strategy to double its Bitcoin (BTC) per share, noting that the stock has traded at a 2x multiple “on and off.”
“So you can see that that’s not an unreasonable premium,” he said. Back explained that if Strategy’s Bitcoin per share keeps growing at the same rate, after about a year and a half, investors “would be at an equivalent” of the market net asset value (mNAV) — meaning the stock price would align with the value of its underlying Bitcoin holdings.