Miller Value CFA Defends MicroStrategy Stock Over Bitcoin ETF
Bill Miller IV, CFA of Miller Value Partners, stated that he believes investing in MicroStrategy (MSTR) shares is better than choosing Spot Bitcoin ETFs. It shed light on the shortcomings of these ETFs, including liquidity restrictions. He also indirectly encouraged investors to invest in MSTR to bet on Bitcoin (BTC).
Why is MicroStrategy stock better than Spot Bitcoin ETFs?
Miller noted that MicroStrategy is currently the largest holder of Bitcoin. Therefore, betting on MSTR stock will open up opportunities to capitalize on Bitcoin’s profits. He also noted that MSTR stock provides better liquidity than Bitcoin ETFs.
Additionally, Miller emphasized that Bitcoin ETFs will charge a fee despite the fee waivers eventually, but investing in MicroStrategy does not require any additional fees. Additionally, the stock offers a huge bet on Bitcoin adoption.
In the CNBC interview, when asked about the divergence in the value of the underlying Bitcoin, Miller Value CFA stated that if the price rises above the intrinsic value, it will be a great opportunity for MicroStrategy. He suggested that the company could sell some of its shares in the market to buy BTC and profit from the price change.
Also Read: MicroStrategy’s Michael Saylor Sold 5,000 MSTR Stock to Invest in Bitcoin
MSTR and Spot BTC ETF Performance
Although Miller Value CFA encourages investment in MSTR stock, its recent performance has not been great. On Friday, January 12, the stock lost 50.65 points, falling 9.45% to $485.53. It currently has a market cap of $7.04 billion.
Additionally, in aftermarket hours on Friday, the stock fell 5.78 points to $479.75, down 1.19%. Additionally, MSTR stock is down more than 24% since Monday, when it opened at $640. The recent decline can be attributed to massive sales by MicroStrategy CEO Michael Saylor.
According to the Bloomberg report, Saylor transferred between 3,882 and 5,000 MSTR shares almost every day from Jan. 2 to Jan. 10. The timeline coincides with the SEC’s deadline for a decision on the Spot Bitcoin ETF. Saylor’s move thus demonstrates his interest in capitalizing on BTC profits at a time when ETF excitement is at its peak.
On the other hand, approved Spot Bitcoin ETFs did not perform well on the second day of trading. Here is a list:
- Grayscale’s GBTC lost 5.19% to close at $38.58.
- BlackRock’s IBIT fell 10.63% to $24.97.
- ARK 21 Shares ETF (ARKB) fell 6.20% to 43.86.
- Bitwise’s BITB lost 6.19% to close at $23.96.
- Fidelity Wise’s FBTC fell 6.19% and closed at $38.35.
- WisdomTree’s BTCW fell 5.50% to $46.61.
- Invesco Galaxy ETF (BTCO) closed down 5.74% at $43.86.
- Valkyrie’s BRRR lost the most, falling 11.56% to $12.47.
- VanEck’s HODL closed at $49.62, down 6.24%.
- Franklin Templeton’s EZBC dropped 6.03% and closed at $25.42.
- Hashdex’s DEFI closed at $52.39, down 6.51%.
Also Read: Grayscale Moves 21.4K Bitcoins Worth Over $900 Million Amid Spot Bitcoin ETF Excitement
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