We’re talkin’ about Strategy, the big boss in Bitcoin holdings, and some people raise their eyebrows, saying the premium’s too high.
Now, But Adam Back, the CEO of Blockstream, steps up and says, hold your horses, it ain’t unreasonable. And he’s got a point.
Strategy stock is a proxy for holding Bitcoin?
Strategy’s stock usually takes about 16 to 18 months to double the amount of Bitcoin it holds per share.
Bitcoin perma-bull @adam3us of @Blockstream shares his thoughts on
– Bitcoin Treasury companies
– Why Bitcoin treasury companies are valued at a premium
– Real world assets on @Liquid_BTC pic.twitter.com/JEqyCOXpQt— Stephan Livera (@stephanlivera) June 21, 2025
That’s right, in just a year and a half, they’re packin’ twice as much Bitcoin per share as before.
So, if you’re an investor, you’re basically getting a stock that’s growing its Bitcoin stash fast enough to justify paying a premium on the shares.
It’s like buying a ticket to a show that’s guaranteed to sell out soon, you pay a little extra, but you’re not getting ripped off.
The current premium on Strategy’s stock is roughly 1.7 times the market net asset value when you look at basic shares, and about 1.9 times if you consider diluted shares.
That means investors are paying nearly double what the Bitcoin in the treasury is worth.
But Strategy uses some financial wizardry, like at-the-market equity offerings and convertible senior notes, to leverage and boost their Bitcoin holdings.
So, the premium reflects not just the Bitcoin they already own but the rapid growth potential.
Risk and reward
Right now, Strategy’s Bitcoin hoard stands at 592,100 coins, valued around $60.89 billion. That’s more Bitcoin than most companies can dream of.
Yet, despite this, the stock price took a bit of a hit, closing at about $369.70, down 7.45% over the past month. But hey, markets have their moods, right?
Adam Back throws in a little wisdom for investors eyeing Bitcoin treasury companies, always ask yourself, is this premium reasonable?
One way to figure that out is to see how long it takes to cover the premium through Bitcoin growth.
If it’s a quick turnaround, you’re less at risk. But if the premium’s sky-high, well, buckle up, it’s a textbook wild ride with big swings in value and higher speculation. Still, those high premiums come with juicy yields, so it’s a trade-off.
Payday?
And speaking of wild rides, Back points to Metaplanet, a Japanese investment firm. Their market net asset value has bounced between 10 and 5, that’s like going from feeling on top of the world to suddenly sweating bullets in the office.
But they’ve managed to bounce back each time, showing resilience in this volatile game.
So yes, Strategy’s premium might look spicy, but it’s backed by a solid track record of doubling Bitcoin per share in under 18 months.
For investors who can handle the risk, it’s a premium that just might pay off big time.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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