MicroStrategy, a software firm led by Bitcoin enthusiast Michael Saylor, has been a major investor in BTC for nearly four years. Despite investing a significant amount of money into Bitcoin, Saylor remains staunchly against other cryptocurrencies, claiming that none of them can compare to Bitcoin. However, analysts have calculated that MicroStrategy could have made a much larger profit if it had invested in Ethereum instead.
In September 2020, MicroStrategy made its first Bitcoin investment of $175 million, acquiring BTC at an average price of $10,419. This investment has resulted in a revenue of approximately $1.13 billion and a profit of over $954 million. At the same time, Ethereum was trading at a much lower price of $357 per ETH. If MicroStrategy had invested the same amount in Ethereum, it would have acquired 490,196 ETH, which would be worth over $1.8 billion today, resulting in a profit of over $1.63 billion.
In total, MicroStrategy has invested around $7.59 billion in acquiring 214,400 Bitcoins, which is now worth over $14.45 billion, yielding a profit of about $6.87 billion. However, if the same amount had been invested in Ethereum, it would have resulted in a portfolio of 4,986,791 ETH, 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, significantly less than the equivalent investment in Ethereum.
Considering Ethereum’s recent peak price of $4,092, the hypothetical Ethereum investment would have been worth over $20.41 billion. This means that Michael Saylor missed out on a profit of $12.82 billion, double the gains from Bitcoin, by not investing in Ethereum.
Furthermore, the potential profit would be even higher when factoring in additional gains from Ethereum staking services. It should be noted that Saylor has emphasized that MicroStrategy has no plans to sell its Bitcoin holdings despite the current profit it holds.
Please note that the information provided in this article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic will not be held responsible for any financial losses incurred.