Bill Miller IV, the Chief Investment Officer of Miller Value Partners, appeared on CNBC’s “Closing Bell” on 12 January 2024 to discuss the newly launched US-listed spot Bitcoin ETFs and their implications for the cryptocurrency market.
Miller Value Partners is an investment management firm known for its value-oriented investment approach. Founded by Bill Miller, a renowned investor, the firm specializes in identifying undervalued assets and investing in them for long-term growth. Miller, famous for his tenure at Legg Mason where he outperformed the S&P 500 for 15 consecutive years, brings his expertise in value investing to Miller Value Partners.
The firm offers various investment products and services, including mutual funds and separately managed accounts, catering to a diverse range of clients from individuals to institutions. Their investment philosophy emphasizes deep fundamental analysis and a contrarian approach, often investing in companies that are out of favor in the market but have strong potential for recovery and growth.
Bill Miller IV is an investment professional known for his association with Miller Value Partners, where he works alongside his father, Bill Miller III, a prominent figure in the investment world. Bill Miller IV has carved out his own reputation in the finance industry, contributing to the firm’s investment strategies and decisions. His role often involves analyzing and selecting stocks, focusing on value investment principles that have been a hallmark of the Miller family’s approach to investing.
Miller began by emphasizing the significance of these ETFs, highlighting them as a major advancement for institutional capital in accessing the cryptocurrency asset class. He pointed out that while these ETFs are noteworthy, there exists an alternative investment that has been exposed to Bitcoin for some time and, in his view, surpasses the benefits of a spot Bitcoin ETF. This alternative, he claims, is MicroStrategy (NASDAQ: MSTR).
According to Miller, MicroStrategy offers several advantages over a spot Bitcoin ETF. Firstly, it is more liquid and, as the world’s largest Bitcoin owner, does not incur any associated fees. He underscored the value of owning a new technological asset and being its largest holder, noting the long-term potential this holds. Also, he mentioned that MicroStrategy’s CEO, a significant shareholder with substantial personal Bitcoin holdings and a strong technological background, adds to the company’s appeal.
Miller then discussed the unique aspect of MicroStrategy’s business model. According to Miller, if the company’s value deviates from its intrinsic value, it has the flexibility to adjust by either selling shares to purchase Bitcoin or buying back shares, depending on the situation. This approach, he argued, is highly beneficial for ongoing shareholders and adds value in the long term.
Shifting focus to the broader market, Miller expressed a positive outlook for equities. He found it particularly interesting that both long-dated government bonds and the stock market experienced double-digit growth simultaneously. This unusual combination, he suggested, indicates market confidence that inflation is under control, a sentiment supported by recent Producer Price Index (PPI) numbers. He also noted the market’s anticipation of a potential Federal Reserve rate cut, which he finds intriguing given the recent strong GDP growth.
