Blockstream CEO Adam Back, who has claims that he is the founder of Bitcoin Satoshi Nakamoto, argued that the premium paid for MicroStrategy (MSTR) shares is not exaggerated.
Back, speaking with Bitcoin Podcast host Stephan Livera at the BTC Prague conference, stated that the company has rapidly doubled the amount of Bitcoin per share, which reduces the risk for investors.
Back, "In the case of MicroStrategy, we see that this period is between 16 and 18 months. The stock sometimes trades at twice the net asset value (NAV). In this context, the premium seems reasonable," he said.
According to Back, the premium on the stock prices of companies holding Bitcoin reserves is not theoretical, but a natural result shaped by market conditions. He pointed out that these companies are increasing the amount of BTC per share by issuing new shares based on this premium to acquire more Bitcoin. "These companies are acquiring more Bitcoin thanks to the premium, thus increasing the amount of Bitcoin available to shareholders," he said.
Back, who described MicroStrategy's strategy as "an arbitrage between the fiat world and the future of Bitcoin," stated that this method does not put investors at risk in the long term because the company compensates for this premium with Bitcoin.
However, Back pointed out that smaller companies trading at a high premium carry a higher volatility risk. Citing the example of MetaPlanet, Back stated that the company's NAV multiple fluctuated between 5 and 10, and this situation could stress investors.
He emphasized that due to the smaller scale of such companies, they can act more agilely in accumulating Bitcoin. He added that being located in regulatory advantageous regions like Japan could facilitate this process.
In his speech, Back also opposed Bitcoin's "declining returns" theory, drawing attention to anomalies experienced in previous cycles. Arguing that factors such as the COVID-19 pandemic, China's mining ban and money supply expansion overshadowed the 2020-2021 cycle, Back said that historical data could therefore be misleading.
Back indicated that there could be an acceleration similar to an "S-curve" in the adoption of Bitcoin, suggesting that this cycle could trigger widespread adoption unlike in the past and could break previous patterns.
In the final section of the conference, Back, who also spoke about Blockstream's new initiatives, explained that with the company's new application, users will be able to purchase Bitcoin directly into their own wallets. He also stated that they are trying to make self-custody more accessible with the Jade and Jade Plus hardware wallets.
Back, "Self-custody is critical for the decentralization of the Bitcoin network. It's very important for people to hold their own keys for the security and control of the network," he said.
*It is not investment advice.
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The name claimed to be the founder of Bitcoin, Satoshi Nakamoto, spoke about Michael Saylor!
Blockstream CEO Adam Back, who has claims that he is the founder of Bitcoin Satoshi Nakamoto, argued that the premium paid for MicroStrategy (MSTR) shares is not exaggerated.
Back, speaking with Bitcoin Podcast host Stephan Livera at the BTC Prague conference, stated that the company has rapidly doubled the amount of Bitcoin per share, which reduces the risk for investors.
Back, "In the case of MicroStrategy, we see that this period is between 16 and 18 months. The stock sometimes trades at twice the net asset value (NAV). In this context, the premium seems reasonable," he said.
According to Back, the premium on the stock prices of companies holding Bitcoin reserves is not theoretical, but a natural result shaped by market conditions. He pointed out that these companies are increasing the amount of BTC per share by issuing new shares based on this premium to acquire more Bitcoin. "These companies are acquiring more Bitcoin thanks to the premium, thus increasing the amount of Bitcoin available to shareholders," he said.
Back, who described MicroStrategy's strategy as "an arbitrage between the fiat world and the future of Bitcoin," stated that this method does not put investors at risk in the long term because the company compensates for this premium with Bitcoin.
However, Back pointed out that smaller companies trading at a high premium carry a higher volatility risk. Citing the example of MetaPlanet, Back stated that the company's NAV multiple fluctuated between 5 and 10, and this situation could stress investors.
He emphasized that due to the smaller scale of such companies, they can act more agilely in accumulating Bitcoin. He added that being located in regulatory advantageous regions like Japan could facilitate this process.
In his speech, Back also opposed Bitcoin's "declining returns" theory, drawing attention to anomalies experienced in previous cycles. Arguing that factors such as the COVID-19 pandemic, China's mining ban and money supply expansion overshadowed the 2020-2021 cycle, Back said that historical data could therefore be misleading.
Back indicated that there could be an acceleration similar to an "S-curve" in the adoption of Bitcoin, suggesting that this cycle could trigger widespread adoption unlike in the past and could break previous patterns.
In the final section of the conference, Back, who also spoke about Blockstream's new initiatives, explained that with the company's new application, users will be able to purchase Bitcoin directly into their own wallets. He also stated that they are trying to make self-custody more accessible with the Jade and Jade Plus hardware wallets.
Back, "Self-custody is critical for the decentralization of the Bitcoin network. It's very important for people to hold their own keys for the security and control of the network," he said.
*It is not investment advice.
Follow our Telegram group, Twitter account, and Youtube channel now for exclusive news, analyses, and on-chain data! Also, start live price tracking immediately by downloading our Android and IOS applications!