$BTC BTC Michael Saylor's strategy premium is not 'irrational': Adam Back

Blockstream CEO Adam Back says that the share premium of Michael Saylor's strategy (MSTR) is within reason, considering how quickly the risk for investors in the market with net asset value (mNAV) has historically decreased.

"It turns out, in the case of MicroStrategy, it took 16 months, 18 months," he told Bitcoin podcaster Stefan Livera at BTC Prague on Saturday, referring to how long it typically takes for a strategy to double its Bitcoin (BTC) per share, given that the shares were trading at a 2x multiplier 'back and forth'.

MSTR's reputation justifies its premium, Back says.

"So you can see that this is not an irrational premium," he said. Back explained that if Bitcoin per share continues to grow at the same pace, after about a year and a half, "you will be at the equivalent of 1 mNAV, thus you have actually reduced risk."