Blockstream CEO Adam Back convinced That MicroStrategy (MSTR) is still "stupidly cheap".

This is despite the fact that the stock is up a whopping 488% year to date.

Buck is certain that those selling MicroStrategy (MSTR) stock will fail because he believes the stock is still undervalued compared to his Bitcoin holdings.

He also saw purchasing MSTR stock as a low-risk opportunity compared to more sophisticated financial products. For example, 2x ETFs, which aim to deliver twice the daily performance of Bitcoin, tend to slip badly. For example, during a period of sideways trading (when the market has no clear direction), ETF products tend to lose value over time. For example, if Bitcoin's price rises 1% one day and then pares those gains the next, it's possible for ETFs to remain in the red.

Back also rejected the idea of ​​buying Bitcoin calls due to the fact that expiration is worthless if timed incorrectly. Options buyers lose the premium paid for the calls if the Bitcoin price remains below the strike price by the time the expiration date reaches. Hence, timing will be crucial in this specific case.

Unlike Bitcoin ETFs, MicroStrategy provides leveraged exposure to Bitcoin.

However, MSTR does not suffer from so-called “decay” problems caused by compound effects. Hence, according to Back, this makes it a balanced option for leveraged Bitcoin exposure.

Shares of the Virginia-based business intelligence company rose nearly 12% on Friday.