Why Ethereum Would Have Been A Better Investment For MicroStrategy
04 Novembre 2022 - 6:00PM
NEWSBTC
The debate of which is the better investment between Bitcoin and
Ethereum continues to wax strong between communities. This time
around, it is being put to the test using MicroStrategy’s crypto
investments over the years. Microstrategy is currently seeing a
loss on the 130,000 BTC that it had purchased over the years,
making it the public company with the largest bitcoin holdings. But
what if the company had invested in Ethereum instead? Ethereum Is A
Better Bet In the course of about two years, MicroStrategy had
ramped up its BTC buying which ran into billions of dollars. At
130,000 BTC on its balance sheet, the company has spent
approximately $4 billion to accumulate the coins. However, even
with the coins being bought over time at varying prices, the
company is still recording a more than $1 billion loss at the
current price of bitcoin. Related Reading: Why Cardano (ADA) Could
Be Gearing Up For A Rally Given that the company remains steadfast
in its support and continuous investment in bitcoin, it begs the
question of what would have been the case if the company had gone
with another cryptocurrency. Specifically, bitcoin’s largest
competitor Ethereum. It is no secret that more often than not,
Ethereum has been outperforming bitcoin. So it is not a stretch to
say that MicroStrategy would be in a better position if it had
invested in Ethereum instead of bitcoin, and the numbers prove this
to be true. ETH price remains below $1,600 | Source: ETHUSD on
TradingView.com A comparison from Blockchain Center shows that
MicroStrategy would be $1.47 billion in profit if it had bought
ETH. Tracking the purchases that the company has made over the
years, it would have 3,541,989 ETH now, worth $5.6 billion. Even at
the peak of MicroStrategy’s BTC holdings, the comparison shows that
ETH would still have performed way better. In December when
MicroStrategy’s holdings were worth just under $8 billion, it would
have been worth $16 billion with ETH. Additionally, if the company
had invested in Ethereum and then proceeded to stake its ETH, it
would have earned approximately $380 million since then.
MicroStrategy would've done better investing in ETH | Source:
Blockchain Center Even now, if the company were to convert all of
its BTC holdings to ETH, it would come out to a total of 1,692,762
ETH. At a 4% APR rate, it would be earning an additional $134
million in annual revenue just from staking alone. Related Reading:
Ethereum Must Hold $1,500 Or Risk A Decline To $1,300 The
comparison puts the various profitability levels of both digital
assets over the year. Ethereum has continued to outperform bitcoin
both in the long and short term. It really begs the question of if
Bitcoin is really the best crypto asset to invest in as ex-CEO of
MicroStrategy Michael Saylor said. Featured image from Forkast
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