Odaily reported that cypherpunk pioneer Adam Back said the market’s negative view of Strategy and its preferred stock STRC lacks a solid basis. In his view, what Strategy is doing remains fundamentally tied to its Bitcoin reserve strategy, rather than representing a change in direction away from long-term Bitcoin holdings.
A Bitcoin-based return model for investors
Back said Strategy is demonstrating that a company can use Bitcoin to deliver returns to investors while also reducing its debt ratio. He argued that the fear, uncertainty and doubt surrounding MSTR and STRC has been overstated, and stated that Strategy will not “go to zero.”
He further described Strategy as showing the market a new financial model in which Bitcoin may in the future serve as an alternative asset to cash for corporate treasury management and capital operations. According to Back, Strategy’s long-term value lies in its continued Bitcoin holdings and in helping the market better understand Bitcoin’s monetary properties.