Legendary Investor Bill Miller Gives Even More Reasons to be Bullish on Bitcoin
Bitcoin is unlike any other asset that can match BTC’s liquidity with its upside potential, says Miller, who bought MicroStrategy’s convertible bond that was used to buy more BTC, which he says had “very little downside and an almost-free call option on Bitcoin.”
Bill Miller is getting more passionate about Bitcoin with each passing day.
The veteran investor Bill Miller in his latest investor note this week, talked about the thought process behind their “recent and unique purchase,” MicroStrategy’s 0.75% convertible bond.
MicroStrategy is betting big on Bitcoin and now holds approximately 70,784 BTC, representing 0.38% of Bitcoin’s circulating supply. The company issued convertible bonds last month, the proceeds of which were used to buy even more BTC.
In Miller’s assessment, the bond had “very little downside and an almost-free call option on Bitcoin.”
Besides having “minimal analyst coverage and a CEO that owns over a quarter of the company,” the reason for purchasing the bond was the company's Bitcoin bet, wrote Miller. His view of the world’s largest cryptocurrency is,
“There is no other asset that combines Bitcoin’s liquidity with its upside potential.”
Bitcoin proponent Michael Saylor, the chief executive officer of MicroStrategy, also played a big part in Miller’s decision as he said, “Saylor is among the longest-tenured CEOs of all publicly traded companies, and he is the only sitting CEO we can find that has thrived after presiding over a 99.86% decline in his company’s equity price.”
The mutual fund legend further pointed to Saylor’s “unique ability to catch an emerging, scalable trend early and build an enduring business around it.”
MicroStrategy was the first publicly-traded company to replace all of its cash in its balance sheet with Bitcoin; a technology Miller has “long supported.’
The digital currency with a market cap of $592 billion, according to Miller, “is still an emerging and under-owned technology in an enormous addressable market.”
With Bitcoin, buyers know what they are getting as there is no other currency in the history of the world with more information and transparency around them, he added. Not to mention, BTC has been the best performing asset over eight of the past ten years and beats even the Nasdaq.
“Not owning any Bitcoin has been a massive mistake, and we expect that will continue to be true,” further wrote Miller.
He also points to Bitcoin’s demand growing consistently faster than supply and a long-term candlestick chart showing progressively higher lows despite significant volatility. Miller said,
“Preferred mediums of exchange tend to move in long cycles, and we may be in the midst of a major global transition that continues to go largely unnoticed.”