Bill Miller IV, CFA at Miller Value Partners, stated that he believes investing in the MicroStrategy (MSTR) stock is better than choosing Spot Bitcoin ETFs. He shed light on the shortcomings of these ETFs, including liquidity restrictions. In addition, he encouraged investors to invest in MSTR to indirectly bet on Bitcoin (BTC).
Why is MicroStrategy stock better than Spot Bitcoin ETFs?
Miller noted that MicroStrategy is the biggest holder of Bitcoin currently. Hence, betting on the MSTR stock would open up opportunities to leverage the profits Bitcoin makes. Moreover, he noted that the MSTR stock provides better liquidity than Bitcoin ETFs.
Additionally, Miller underscored that despite fee waivers eventually, Bitcoin ETFs would charge a fee while investing in MicroStrategy doesn’t require any additional charges. Also, the stock provides massive optionality when it comes to Bitcoin adoption.
In a CNBC interview, when asked about the deviation in the value of the underlying Bitcoin, Miller Value CFA noted that if the price moves above the intrinsic value, it would be a great opportunity for MicroStrategy. He suggested that the company could sell some of its shares in the market to buy BTC and earn from the price shift.
Also Read: MicroStrategy’s Michael Saylor Sells 5,000 MSTR Stocks For Investing Into Bitcoin
MSTR & Spot BTC ETF Performance
Though the Miller Value CFA encourages investment in the MSTR stock, its recent performance hasn’t been great. On Friday, January 12, the stock plunged 9.45% to $485.53, losing 50.65 points. Currently, it holds a market cap of $7.04 billion.
Moreover, in the aftermarket hours on Friday, the stock tumbled 1.19% to $479.75, down by 5.78 points. In addition, the MSTR stock has lost over 24% in value since Monday when it opened at $640. The recent slump could be attributed to the major sell-off by MicroStrategy CEO Michael Saylor.
According to a Bloomberg report, Saylor offloaded 3,882 to 5,000 MSTR shares almost every day from January 2 to January 10. The timeline coincides with the SEC’s deadline for a decision on Spot Bitcoin ETF. Hence, Saylor’s move indicates his interest in leveraging BTC profits when the ETF hype was at its peak.
On the other hand, the approved Spot Bitcoin ETFs also didn’t perform well on the second day of trading. Here’s a list:
- Grayscale’s GBTC closed at $38.58, losing 5.19%.
- BlackRock’s IBIT tumbled 10.63% to $24.97.
- The ARK 21 Shares ETF (ARKB) plunged 6.20% to 43.86.
- Bitwise’s BITB lost 6.19% in value, closing at $23.96.
- Fidelity Wise’s FBTC witnessed a dip of 6.19% and closed at $38.35.
- WisdomTree’s BTCW dropped by 5.50% to $46.61.
- The Invesco Galaxy ETF (BTCO) closed 5.74% lower at $43.86.
- Valkyrie’s BRRR suffered the maximum loss, plunging 11.56% to $12.47.
- VanEck’s HODL declined by 6.24%, closing at $49.62.
- Franklin Templeton’s EZBC registered a 6.03% dip and closed at $25.42.
- Hashdex’s DEFI closed at $52.39, down by 6.51%.
Moreover, these ETFs also tumbled in the after-hours of the market, except for Hashdex’s DEFI which gained over 2% in value.
Also Read: Grayscale Moves 21.4K Bitcoin Worth Over $900 Mln Amid Spot Bitcoin ETF Hype