Blockstream CEO Adam Back believes MicroStrategy (MSTR) stock is still undervalued despite its 488% year-to-date rise.
Back believes that shorting the stock is doomed to fail, arguing that the stock's intrinsic value is much higher due to its massive Bitcoin holdings.
Buck emphasized that buying MicroStrategy shares is a less risky option compared to complex financial products such as 2x leveraged ETFs.
He explained that these funds tend to lose value during periods of sideways trading, as compounding effects reduce expected gains, making them less reliable.
Buck also criticized the purchase of call options, noting that their value depends largely on timing.
If the price of Bitcoin does not reach the strike price at the expiration of the option, the investor loses the entire premium paid.
In contrast, MicroStrategy is a great option for getting exposure to Bitcoin leverage without the decay issues that affect other products.
Shares of the Virginia-based company rose 12% on Friday, boosting investor confidence in its potential as a way to capitalize on bitcoin's growth.
“Buck” considers MSTR stock a unique investment opportunity that combines significant exposure to Bitcoin with relative stability compared to other investment options in the market, making it an attractive option for investors looking to profit from the rise of the cryptocurrency without the complexities of traditional financial products.