Blockstream CEO Adam Back says Michael Saylor’s Strategy (MSTR) stock premium is within reason, 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 Strategy to double its Bitcoin BTC$BTC 102,798 per share, given that the stock has traded at a 2x multiple “on and off.” MSTR’s track record justifies its premium, says Back “So you can see that that’s not an unreasonable premium,” he said. Back explained that if Strategy’s Bitcoin per share keeps growing at the same rate, after about a year and a half, investors “would be at an equivalent of 1 mNAV.” “So, you’re derisked actually,” he said.
“It’s got a hard currency base at that level,” he added. MSTR’s net asset value premium is currently about 1.7x based on basic shares and around 1.9x when calculated on a diluted share basis, according to MSTR Tracker. Strategy uses leverage, using financial instruments such as at-the-market equity offerings (ATM) and convertible senior notes to increase its Bitcoin holdings.
Saylor Tracker data shows the firm holds 592,100 Bitcoin at the time of publication, worth approximately $60.89 billion.
