MicroStrategy’s recent investment in Bitcoin has paid off, generating over $30 million in profits. But what would have happened if the company had focused on Ethereum?
MicroStrategy and Bitcoin – A matter of conviction or profit?
MicroStrategy, under the leadership of Michael Saylor, recently announced a significant acquisition of Bitcoin. With an initial investment of approximately $147.3 million to obtain 5,445 BTC, the company enjoyed an average purchase price of $27,053.
The benefits of this investment are expected to be positive. According to the statistics from the “Saylor Tracker”, the company reaped a notable profit of $17.82 million, which represents an increase of 12% compared to their initial investment. However, would this added value have been more significant if the company had focused on another cryptocurrency, such as Ethereum?
Moreover, a study of the data provided by blockchaincenter.net offers a captivating point of view. If MicroStrategy had favored Ethereum over Bitcoin, its profits would have reached new heights: a potential $1.959 billion, well above the gain of $0.086 billion earned from their BTC holdings.
Additionally, by choosing to stake Ethereum, MicroStrategy would have accumulated an additional 383,107 ETH, currently valued at $643.8 million. The overall amount of its assets in Ethereum, including staked ETH, would have increased to 4.35 million ETH, or a valuation of $7.318 billion.
Given the current situation, if MicroStrategy converted its BTC into Ethereum, it could appropriate up to 2.85 million ETH. Such a move would generate annual revenues of $240 million, solely through staking.
MicroStrategy: The long-term vision
The recent revelation regarding MicroStrategy’s $60 million unrealized earnings has attracted a lot of attention. Despite significant declines and volatility in the crypto market this year, the firm has continued to firmly adhere to its Bitcoin HODL strategy. Their bold approach to investing has proven profitable.
While the crypto market seems to be moving towards a certain stability and the price of Bitcoin flirts with $30,000, MicroStrategy plans to intensify its investments in Bitcoin.
MicroStrategy’s unwavering commitment to Bitcoin demonstrates a deep faith and vision in the long-term value of BTC, rather than a frantic pursuit of immediate gains. Ultimately, if the only ambition was quick profit, it is likely that the company would have diversified its portfolio with other cryptocurrencies, or become “shitcoiners”.
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