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 justifiable, considering how fast the firm’s market net asset value (mNAV) has historically reduced risk exposure 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 how long it typically takes for the Strategy to double its Bitcoin (BTC) per share, given 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 the Bitcoin per share keeps growing at the same rate, after about a year and a half, “you would be at an equivalent of 1 mNAV, so you’re derisked actually.”
