Instead of losing $1.3 billion, MicroStrategy could earn $1.6 billion if it invested in Ethereum instead of Bitcoin, the authors of the resource calculated Blockchain Center.
Led by Michael Saylor, the firm converted some of its reserves into digital gold in August 2020 for the first time. The business analytics software company acquired 21,454 BTC (~$250 million at the time of the deal).
After that, MicroStrategy began to follow the board-approved strategy of investing in bitcoin not only with equity, but also with debt financing.
The company made its last purchase of 301 BTC worth $6 million in September 2022. The volume of its cryptocurrency reserves reached 130,000 BTC, in which about $3.98 billion was invested. The current value of assets is approximately $2.66 billion.
The Blockchain Center service made the slogan of the page dedicated to MicroStrategy the phrase of an ardent supporter of Sailor’s first cryptocurrency:
“There is no second best.”
There is no second best. #Bitcoin
— Michael Saylor⚡️ (@saylor) October 8, 2021
However, according to their calculations, if they invested in Ethereum instead of Bitcoin, the company’s reserves would now be 3,781,691 ETH ($5.9 billion), taking into account the income from staking.
Even now, by converting digital gold into the second largest cryptocurrency by capitalization, the firm would receive $133 million in passive income on assets annually.
“MicroStrategy has never seen such a large operating profit,” the experts emphasized.
Arcane Crypto Investment Director Eric Wall drew attention to the data of the service. In the comments under his tweet, users noted that not only would betting on Ethereum be more profitable than bitcoin.
Independent developer Udi Werheimer, for example, pointed to Solana and Dogecoin.
and it’s not just saylor
if you DCA’d into bitcoin over the last couple of years you’re down horrendous, even if you started at $4,000
if you DCA’d anything else. — ETH, SOL, DOGE… you’re up by a lot
can’t imagine why the plebs are so mad
— Udi Wertheimer (@udiWertheimer) November 4, 2022
During this time, both assets rose to their own peaks, which were $0.73 for Dogecoin and $260 for Solana.
The authors of the Blockchain Center acknowledged that their retrospective analysis is speculative.
“Sailor’s decision to convert cash to bitcoin could be (and still can be) the greatest decision of all time. But, to say “there is no second best crypto asset” was, after all, a stretch, given the available data,” the experts concluded.
Recall that in August, Saylor stepped down as CEO of MicroStrategy and became executive chairman.
He called the right and justified decision to transfer reserves to the first cryptocurrency, despite the fall of the market.
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