MicroStrategy could have made 108% more by investing in Ethereum instead of Bitcoin
US business intelligence firm MicroStrategy is among the pioneering institutions to convert part of its balance sheet into Bitcoin (BTC), citing the asset’s strong store of value properties. However, new data indicates that the company had a better chance of more profit if it had chosen Ethereum (ETH).
In this case, MicroStrategy could have recorded about 108.72% or an additional $3 billion in profit as of November 6 by investing in Ethereum, Blockchain Centers data Rohmeo_de indicates.
Notably, as of September 20, 2022, the company had a Bitcoin haul of 130,000 BTC with a market cap of $2.76 billion at the time of publication. However, if the amount was invested in Ethereum, it could control about 3,542,000 ETH worth $5.77 billion.
MicroStrategy’s History with Bitcoin
It is worth mentioning that MicroStrategy has accumulated Bitcoin in different phases of the market cycles. As reported by Finbold, the company used the ongoing bear market to add more Bitcoin, with former CEO Michael Saylor claiming the asset is the ultimate store of value and hedge against inflation next to being “second to none”.
At the same time, MicroStrategy has incurred losses on its Bitcoin investment. During the second quarter of 2002, MSTR reported quarterly revenue of $122.1 million against expectations of $126 million, with a loss of $918.1 million. Interestingly, $917.8 million of the losses were attributed to Bitcoin holdings.
Elsewhere, the company has received criticism for the Bitcoin alternative, with ‘The black swanAuthor Nassim Nicholas Taleb mocks Saylor by saying that his exit from the helm of MicroStrategy was another “nail in the coffin” of the company’s skepticism not to sell Bitcoin despite the bear market.
Ethereum’s potential
Based on the profit potential, Ethereum seems to live up to its latest expectations amid intense network development. Ethereum has undergone various upgrades, such as the merger that transferred the blockchain to a Proof-of-Stake (PoS) status.
Due to the accompanying deflationary features, the historic upgrade has been touted to make Ethereum attractive to institutions.
Furthermore, due to Ethereum’s decentralized nature and energy efficiency, a section of the market believes that the token is poised to overtake Bitcoin as the number one cryptocurrency. Despite recently registering a minor price rally, Bitcoin’s continued decline in market dominance is helping the upside performance. Interestingly, the drop in dominance comes as several altcoins continue to be the center of attention.
Amid the variation in potential profits, Ethereum and Bitcoin still maintain bullish sentiment. By the end of 2022, estimates indicate that Bitcoin could regain the critical support level of $25,000. Elsewhere, as reported by Finbold on October 27, Ethereum could regain the $3,000 level by 2023.
In general, both assets are still weighed down by the prevailing market conditions leading to a fall from significant levels. At pressure, Bitcoin tried to maintain recent gains, trading at $21,187, while Ethereum was valued at $1,600.
