Blockstream CEO Adam Back Slams MicroStrategy Short ETF as a "Terrible Product" Risky Business: Back Warns Against Betting Against MSTRAdam Back, the CEO of Blockstream, has taken aim at the newly launched Defiance 2X Short MSTR ETF. In a recent X thread, he didn't mince words, labeling the ETF as a
"terrible product" that's unlikely to deliver the desired results.
Navigating Choppy Waters: The Perils of Shorting MSTRBack's main concern lies in the inherent riskiness of shorting MicroStrategy. Even if investors believe the company is overvalued, he warns that the ETF could still face significant challenges due to
auto-rebalancing in a volatile market. As he puts it,
"you'll get rekt anyway." MicroStrategy's Bitcoin Bounty: A Thorn in the ETF's SideWith MicroStrategy boasting an impressive stash of over 210,000 BTC, worth a staggering $15.2 billion, Back sees the idea of a short ETF as particularly weak. He highlights that the company's valuation is now closely tied to its Bitcoin investments, making the ETF's
2x auto-rebalancing mechanism a potential recipe for disaster.
Saylor Stands Firm: MicroStrategy's Bitcoin Bet Remains UnshakenDespite mounting criticism and even short sellers like Kerrisdale Capital taking aim at MicroStrategy, CEO Michael Saylor remains steadfast in his commitment to Bitcoin. He believes in its technical superiority and isn't swayed by those who argue there are cheaper ways to gain exposure to the digital gold.
