20.10.2021

Billionaire Bill Miller Considers Ditching Cryptocurrency Investments A Mistake

Billionaire Bill Miller sees huge potential in both Bitcoin and the company that owns the equivalent of $ 2.3 billion in BTC. We are talking about the analytical giant MicroStrategy, which began to actively buy bitcoins since last summer.

In his recent address to investors, Miller explained why his Miller Value Funds acquired MicroStrategy’s convertible bonds. And it’s just about the cryptocurrency.

To begin with, let’s recall that MicroStrategy, which is listed on the Nasdaq, owns at least 70,784 BTC. Currently, this amount is estimated at $ 2.3 billion, and the giant’s management intends to increase its own reserves in all possible ways. For example, at the end of last year, MicroStrategy sold $ 650 million worth of debt securities to buy even more cryptocurrency. And it is in them that Miller is interested.

In general, attempts to capitalize on the growth of the cryptocurrency niche without direct purchase of coins can now be called an emerging trend. As we learned in the first half of January, Morgan Stanley representatives had already invested in shares of the already mentioned MicroStrategy company.

However, a real boom in indirect investments in cryptocurrencies may arise after the launch of ETFs for digital assets. Thanks to this, traders will be able to earn money due to changes in the exchange rate of cryptocurrencies – and this can be done directly on the stock markets. VanEck filed a corresponding application to the US Securities and Exchange Commission the day before. And although previous attempts have ended in nothing, the leadership of the organization does not lose hope and continues to insist on the launch of the product.

What will happen to Bitcoin – the opinion of a billionaire

Miller’s firm bought MicroStrategy convertible securities, which bring in 0.75 percent per annum, and can be exchanged for stock and / or cash depending on certain factors. Here is a quote from the billionaire’s address to investors, thanks to which the position of the company becomes clear. The cue is from Decrypt.

In our estimation, Bitcoin has very few downsides and an almost free call option. MicroStrategy now owns more bitcoins than any other organization, which lends some scarcity value over and above the value of the core business and the coins it operates.

Note that this statement is not entirely accurate. The largest Bitcoin holder among companies is the Grayscale Foundation, not MicroStrategy. We have updated the latest data: the former now has more than 636 thousand bitcoins at its disposal. And this is several times more than the corresponding indicator of Michael Saylor’s company.

Since Miller’s investment relies on BTC purchases from MicroStrategy, the investor laid out the case for owning the main cryptocurrency. He continues.

Almost every bitcoin holder has received higher returns in cryptocurrency than anything else, and those who understand this see no reason to invest their excess margin liquidity in other assets at the moment. The world is ruled by unique and unexpected events. So far, everything indicates that Bitcoin is just one of them.

That is, the expert believes that the first cryptocurrency, due to its peculiarities as a limited supply, should be ahead of other investment instruments. Since Bitcoin has already become the most profitable investment of the decade, the experts’ words can really come true.

Note that Miller belongs to a separate category of investors who specialize in long-term investments. They invest in assets that they believe are undervalued. That is, we can conclude that the billionaire in the future is counting on the continued rapid growth in the price of Bitcoin.

Finally, another great quote from an investor.

Giving up ownership of bitcoins was a big mistake and this statement is unlikely to change in the near future.

We believe that such statements from a billionaire investor are clear evidence of the start of bull run, that is, a stage in the growth of the cryptocurrency niche. The owners of large fortunes are more and more actively involved in investing money in cryptocurrencies, and this trend is encouraging. In addition, we are talking not only about the direct purchase of coins, but also about indirect investments in the companies that are associated with them.

This proves the popularity of the cryptocurrency industry, which is becoming more and more popular. We are waiting for the development of events and new statements from companies with a worldwide reputation.

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