MicroStrategy Shares Trading at Discount Relative to Bitcoin Holdings, Says Blockstream CEO

According to CryptoPotato, Blockstream CEO Adam Back has argued that shares in Bitcoin-bullish software business MicroStrategy are trading at a massive discount relative to their underlying BTC holdings. MicroStrategy, owned by Bitcoin maximalist Michael Saylor, is one of the largest Bitcoin investors on the planet, currently owning at least 189,150 BTC worth $8.09 billion. Back estimated the value of its software business to be roughly $2 billion, making the fair market value around $10.5 billion to $11.5 billion. He believes the MSTR price should be around $625-$685 at least. MSTR rallied from $329 to $685 between the start and finish of Q4 2023, outpacing even Bitcoin’s gains during that period. Both assets rallied amid excitement for the launch of Bitcoin spot ETFs on U.S. exchanges, which were successfully approved last week. However, MSTR suffered a far more significant slide to $482 by January 16, down 30% since its high at the start of the year. Critics of Back’s position claim that MSTR may still be trading at a premium when the company’s $2 billion debts are factored in. Back noted that this debt is long-dated and will effectively “inflate away” with time. According to calculations by Bitcoin ETF analyst Fred Krueger, MSTR will still slightly underperform BTC itself if the latter were to rally to $200,000 per coin. Overall, MicroStrategy is up 36.11% ($2.14 billion) on its Bitcoin holdings.