Jeff Dorman, CIO of investment management firm Arca, has revealed he believes it may be possible to get exposure to bitcoin at a 47% discount to current prices, by investing in an altcoin he believes might “be the best risk/reward in digital assets.”

In a tweet thread, Dorman first pointed out that EOS has been significantly underperforming when compared to other cryptocurrencies, with “other zombie projects” being up between 300% and 1,000% since the bear market.

The cryptocurrency is undervalued, as such, as Block.one, the company behind the EOSIO software, owns 140,000 BTC, which is worth over $5.2 billion at press time. EOS’ market capitalization is $2.6 billion, which means the firm’s BTC holdings are worth more than the cryptocurrency.

To Dorman, buying EOS means gaining exposure to BTC at $18,771, but it isn’t clear how the value can be unlocked for investors.

Dorman added that generating a return on investment from the book value is taking a gamble on what management will do with the funds, and pointed out that EOS and Block.one hasn’t done much to instill confidence so far.

The analyst believes that as institutional investors enter the space, so will activist investors. These, he said, will act once they see that there are $2.8 billion in value to be extracted from EOS. He cited examples in which this has happened before.

To Dorman, EOS and Block.one CEO Brendan Blumer will either have to return capital to EOS holders, create value for them, or get ready to face lawsuits from investors. Any of these options, he said, “will unlock this value, and close the gap between EOS’ market cap and the value of the BTC on their balance sheet.”

The price of EOS, it’s worth noting, has been plunging over the last few months, and is currently trading at $2.79. The cryptocurrency’s price, it’s worth noting, is far from its all-time high above $20 seen in 2018. The plunge was accelerated after Dan Larimer left Block.one.

In response to Dorman’s tweets, one user pointed out that when investing in EOS users are not buying bitcoin, even though Block.one does own 10% of EOS’ supply and updates the EOSIO code, EOS is a public blockchain and the firm does not have to reward token holders with its BTC.

Featured image via Unsplash.