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Adam Back Says MicroStrategy (MSTR) Is “Stupidly Cheap”
MicroStrategy’s shares have been surging in recent days, and Bitcoin pioneer Adam Back has weighed in on the Virginia-based business intelligence firm. In a statement, he deemed the stock as “stupidly cheap”.
Back, known for his role in developing Hashcash, an early proof-of-work algorithm used to secure online transactions, acknowledged that some investors might be hesitant about MicroStrategy’s leveraged exposure to Bitcoin. However, he rejected the idea of buying Bitcoin calls due to their potential to expire worthless if mistimed.
The expert emphasized that options buyers would lose the premium paid for the calls should the price of Bitcoin remain below the strike price at expiration. Back highlighted the importance of timing in this specific scenario.
In contrast, MicroStrategy’s shares (MSTR) offer a more balanced approach to leveraged exposure to Bitcoin. Unlike ETFs, which can potentially decline in value due to compounding effects and decay issues, MSTR does not suffer from such problems.
As a result, Back believes that the company’s stock presents an attractive opportunity at its current price.
Source: u.today
