After Michael Saylor, Microstrategy’s executive chairman, disclosed that the company now holds 226,500 BTC valued at $13.4 billion, it turns out the firm’s bitcoin ( BTC) holdings have gained 61% profit. Interestingly, while blockchaincenter.net’s ‘There Is No Second Best’ index once hinted that investing in ethereum might have been a wiser choice for Microstrategy, the gap has now narrowed. At present, an investment in ether would only be 63% higher in value compared to their bitcoin holdings.
Microstrategy’s Bitcoin Holdings Catch Up to Theoretical Ether Profits Without Staking
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Minus Staking Possible Yield, Microstrategy’s Bitcoin Holdings Now Parallel to Theoretical Ether Returns
In the first week of December 2023, Microstrategy’s bitcoin ( BTC) investment had climbed 30%. Back then, blockchaincenter.net’s ‘There Is No Second Best’ index revealed that had the company opted for ethereum ( ETH) instead, their gains would have been 71%. However, the tables have turned, and ether has now seen a significant drop in value compared to BTC.
Eight months ago, Microstrategy (MS) held 174,530 BTC. Fast forward to today, and the company has increased its holdings to 226,500 BTC, now worth $13.4 billion. MS paid $8.353 billion for this stash, averaging $36,907 per coin. According to the ‘There Is No Second Best’ index, had MS dollar-cost averaged into ether instead of bitcoin, it would have acquired 5,210,397 ETH, which would currently be worth two percentage points more than its BTC investment.
Had MS opted for ETH, the company’s holdings would be up by about $206 million more than its BTC investment. Additionally, if MS had invested in ether and staked the asset right away, MS would have 535,672 more ETH, adding an extra $1.39 billion on top of the $206 million profit from simply holding ETH. Instead of holding 226,500 BTC valued at $13.4 billion, MS could be sitting on 5.74 million ETH, which would be worth $14.9 billion today.
What are your thoughts on the profits Microstrategy has gained from its bitcoin investment? If you were in their shoes, would you have gone the bitcoin route or opted for ethereum? Share your thoughts and opinions in the comments below.
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