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

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

Back is certain that those shorting the MicroStrategy (MSTR) stock will fail because he believes that the stock is still undervalued relative to its Bitcoin holdings.

He further opined that buying the MSTR stock is a low-risk opportunity compared to more sophisticated financial products. For instance, 2x ETFs, which are meant to deliver twice the daily performance of Bitcoin, tend to slip badly. For instance, during a period of sideways trading (when the market has no clear direction), such ETF products tend to lose value over time. For instance, if the price of Bitcoin goes up 1% one day and then pares these gains the other day, the ETF could still be in the red.

Back also rejected the idea of buying Bitcoin calls due to the fact that they call expire worthless if mistimed. Options buyers lose the premium paid for the calls if the Bitcoin price remains below the strike price by the time the expiration date arrives. Hence, timing would be crucial in this specific case.

Unlike Bitcoin ETFs, MicroStrategy offers leveraged exposure to Bitcoin.

However, MSTR does not suffer from the so-called "decay" issues caused by compounding effects. Hence, according to Back, this makes it a balanced option for leveraged Bitcoin exposure.

The shares of the Virginia-based business intelligence firm were up nearly 12% on Friday.