MicroStrategy Inc., a data intelligence firm led by Michael Saylor, has long been renowned for its significant holdings of Bitcoin (BTC). However, recent data has brought an intriguing revelation to light: the company might have potentially garnered greater profits had it invested in Ethereum (ETH) instead.
Information sourced from blockchaincenter.net, an analytics platform, indicates that MicroStrategy’s investment portfolio could have yielded superior returns if it had focused on Ethereum instead of Bitcoin.
In a Monday regulatory filing, MicroStrategy disclosed its acquisition of nearly $150 million worth of Bitcoin between August 1 and September 24. While this reaffirms the company’s commitment to Bitcoin as a store of value and hedge against inflation, the comparative statistics from blockchaincenter.net suggest an alternative scenario.
Ethereum, often regarded as a leading smart contract platform, has experienced substantial growth and adoption in recent years. Its native cryptocurrency, Ether (ETH), has seen remarkable price appreciation and numerous applications in decentralized finance (DeFi), non-fungible tokens (NFTs), and more.
These statistics highlight the dynamic nature of the cryptocurrency market, where various digital assets offer unique opportunities and risks. While MicroStrategy continues to be a prominent advocate for Bitcoin, the comparison with Ethereum raises intriguing questions about alternative investment strategies and potential future diversifications in the crypto space.
“MicroStrategy and its affiliates recently bought roughly 5,445 bitcoins for about $147.3 million, or about $27,053 per bitcoin on average. This acquisition increases MicroStrategy’s total Bitcoin holdings to roughly 158,245 BTC, which were acquired for a total cost of approximately $4.68 billion, with an average purchase price of approximately $29,582 per bitcoin.
The data revealing a potentially different outcome for MicroStrategy comes from Holger, the creator of the dataset on blockchaincenter.net. He’s a self-proclaimed ‘data nerd’ who gathered these statistics, which paint an alternative perspective on MicroStrategy’s investment.”
This data suggests that, in hindsight, investing in Ethereum might have been more profitable for MicroStrategy.
“MicroStrategy would currently possess about 3,971,678 ETH, with their portfolio’s current worth reaching $6.320 billion, if they had decided to put their money in Ethereum (ETH) at different moments in time. This would represent a 34% increase compared to their Bitcoin (BTC) investment, which incurred a 12% loss, resulting in a profit of approximately $2.255 billion from ETH.
Additionally, had the company staked their Ether holdings, they could have potentially earned an extra 371,355 ETH, amounting to an annual staking profit of around $591.0 million, assuming an annual percentage rate (APR) of 4%.
Holger’s data also indicates that if MicroStrategy were to exchange their BTC for ETH today, they would receive approximately 2,619,368 ETH based on current exchange rates. This ETH portfolio could generate an estimated $208 million annually through staking.
It’s important to note that despite these intriguing findings, MicroStrategy’s CEO, Michael Saylor, has consistently expressed his strong preference for BTC, making a switch to ETH highly improbable.”
