Miller Value Partners is Betting on Grayscale Bitcoin Trust (GBTC) Stock

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Miller Value Partners recently released its Q2 2021 Investor Letter, a copy of which you can download here. The Miller Opportunity Trust Class I gained 4.18%, underperforming its benchmark, the S&P 500 Index which returned 8.55% in the same quarter. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Grayscale Bitcoin Trust (NYSE:GBTC) is one of them. Grayscale Bitcoin Trust (NYSE:GBTC) is a financial vehicle enabling investors to trade shares in trusts that hold large pools of Bitcoin. In the last three months, Grayscale Bitcoin Trust (NYSE:GBTC) stock gained 25%. Here is what the fund said:

“Grayscale Bitcoin Trust (GBTC) reversed a large portion of the gains seen in the first quarter, declining -41.48% during the second quarter. A pullback is normal after such a strong move in the first quarter (up 103%) but a number of headlines assisted in the decline. Tesla reversed course in the period, removing Bitcoin as a payment option citing environmental concerns as the reason for the change of heart. China reiterated their crypto-mining bans from 2013 and 2017 that bar financial and payment institutions from providing any services related to cryptocurrency transactions. China also imposed new restrictions on energy-intensive mining ordering cryptocurrency miners to shut down their operations. The cryptocurrency did not move higher despite El Salvador passing a new law that makes bitcoin legal tender in the country.”

Our calculations showed that Grayscale Bitcoin Trust (NYSE:GBTC) isn’t ranked among the 30 most popular stocks among hedge funds.

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