In his final announcement to investors this week, veteran investor Bill Miller spoke about the thought process behind the recent and unique buy of the MicroStrategy 0.75% convertible bond. MicroStrategy relies heavily on Bitcoin and now owns around 70,784 BTC, which is 0.38% of the circulating Bitcoin supply. The company issued convertible bonds last month, the proceeds of which are used to buy more BTC. According to Miller, the bond has minor drawbacks and an almost free bitcoin calling option.
Along with minimal coverage of analysts and CEOs who own more than a quarter of the company, the reason bonds buy bonds is the company’s bet on Bitcoin, Miller wrote. In his view, the world’s largest cryptocurrency is that no other asset combines Bitcoin’s liquidity with its growth potential.
Saylor Played a Huge Part in Bill’s Decision
Bitcoin supporter Michael Saylor, CEO of MicroStrategy, also played a big part in Miller’s decision, saying that Sailor is one of the longest-running CEOs of any public company. He is the only CEO they could find success after his company’s stock price fell 99.86%.
The mutual fund legend also highlights Saylor’s unique ability to anticipate emerging and scalable trends and build a lasting business.
MicroStrategy is the first public company to replace all of its money on the balance sheet with Bitcoin, a technology that Miller has long supported.
According to Miller, the digital currency, with a market capitalization of $592 billion, is still emerging technology and small in size in the large address market.
With bitcoin, buyers know what they’re getting because no other currency in world history offers more information and transparency, he added. Not to mention, BTC is the best performing asset in eight of the last ten years, outperforming Nasdaq.
Bitcoin Becomes Less Risky As Price Goes Higher
In writing, Miller said that it is a grave mistake not to own bitcoin, and he hopes that it will continue to be. On January 8, Bill Miller said he believes that owning Bitcoin is a safer investment solution, the higher the price of digital coins.
The total supply of bitcoin is growing at below 2% per year, and at a price, it is clear that demand is growing much faster. By the time that happens, bitcoin will likely be higher, and possibly much higher, added Miller.
He further predicted that the bitcoin price is expected to increase 50% to 100% from the current price over the next 12 to 18 months. And if you had to ask me above or below, I would say that the odds are higher than lower.