Data reveals that MicroStrategy, led by Bitcoin advocate Michael Saylor, missed out on a staggering profit of over $12.82 billion by choosing not to invest its $7.59 billion in Ethereum.
MicroStrategy, a software company, has been a major institutional investor in Bitcoin for almost four years, investing $7.59 billion in the cryptocurrency since 2020. However, despite consistently allocating significant monthly funds to Bitcoin, Saylor remains steadfast in his belief that Bitcoin is the superior crypto asset and dismisses other cryptocurrencies.
Saylor is famously known for proclaiming that there is no crypto asset that comes close to Bitcoin. In a recent presentation, he asserted that assets like Ethereum, XRP, Solana, BNB, and Cardano are “unregistered securities” and claimed that none of them would ever receive approval for an ETF.
In light of Saylor’s views, analysts have examined the potential profitability of MicroStrategy if the company had chosen to invest in Ethereum instead of Bitcoin.
In September 2020, MicroStrategy announced its first Bitcoin investment, purchasing $175 million worth of BTC at an average price of $10,419. This investment has generated approximately $1.13 billion in revenue, resulting in a profit of over $954 million.
During the same period, Ethereum was trading at a low price of $357 per ETH. If MicroStrategy had invested the same amount in Ethereum, it would have acquired 490,196 ETH. With Ethereum’s current market value, this investment would be worth over $1.8 billion, generating a return of over $1.63 billion.
Therefore, MicroStrategy’s initial crypto investment missed out on an additional profit of $671 million by choosing Bitcoin over Ethereum.
Taking a broader perspective, Saylor’s company has invested around $7.59 billion in acquiring 214,400 Bitcoins. This investment is now valued at over $14.45 billion, resulting in a profit of approximately $6.87 billion, considering Bitcoin’s current price of $67,238.
However, if MicroStrategy had made a similar investment in Ethereum, it would have amassed a portfolio of 4,986,791 ETH, which, at Ethereum’s price of $3,692, would be worth approximately $18.4 billion.
Even at Bitcoin’s all-time high of $73,750, MicroStrategy’s investment would only be worth $15.8 billion, still significantly less than an equivalent investment in Ethereum.
Considering Ethereum’s recent peak of $4,092, the hypothetical Ethereum investment would have been worth over $20.41 billion. In essence, Michael Saylor missed out on a profit of $12.82 billion, twice the gains from Bitcoin, by not investing the $7.59 billion in Ethereum.
Furthermore, the projected profit would be even higher when factoring in additional gains from the Ethereum staking service. It is worth mentioning that Saylor has vehemently stated that MicroStrategy will not sell its Bitcoin holdings, despite the current profits.
Disclaimer: This article provides information and should not be considered financial advice. The views expressed in this article may be the author’s personal opinions and do not necessarily reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.