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MicroStrategy's Bitcoin gains now close to theoretical Ether profits

MicroStrategy's Bitcoin gains now close to theoretical Ether profits

GrafaGrafa2024/08/19 06:45
By:Isaac Francis

MicroStrategy, led by executive chairman Michael Saylor, recently revealed that the company now holds 226,500 Bitcoin (CRYPTO:BTC), valued at $13.4 billion.

This substantial investment has resulted in a 61% profit for the firm.

Interestingly, while earlier analysis suggested that investing in Ethereum (CRYPTO:ETH) might have been more profitable for MicroStrategy, the gap between the potential gains from Bitcoin and Ethereum has now narrowed significantly.

According to blockchaincenter.net's 'There Is No Second Best' index, an investment in Ethereum would currently be worth 63% more than MicroStrategy's Bitcoin holdings.

However, this difference is much smaller than it was eight months ago when Ethereum was outperforming Bitcoin by a larger margin.

In December 2023, MicroStrategy's Bitcoin investment had grown by 30%, but if the company had chosen Ethereum instead, their gains would have been 71%.

At that time, MicroStrategy held 174,530 BTC.

Over the past eight months, the company increased its holdings to 226,500 BTC, which it acquired at an average price of $36,907 per coin, for a total investment of $8.353 billion.

If MicroStrategy had opted for Ethereum instead, they would have acquired 5,210,397 ETH, which would now be worth slightly more than their current Bitcoin investment.

Additionally, if MicroStrategy had invested in Ethereum and staked it, they could have earned an extra $1.39 billion on top of the $206 million profit from holding Ethereum alone.

This staking would have increased their Ethereum holdings by 535,672 ETH, bringing the total to 5.74 million ETH, valued at $14.9 billion today.

While MicroStrategy's decision to invest in Bitcoin has been profitable, the potential gains from investing in and staking Ethereum would have been higher.

However, the gap between these two strategies has narrowed, highlighting the dynamic nature of cryptocurrency investments and the evolving performance of major digital assets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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