Why Ethereum Would Have Been A Better Investment For MicroStrategy

The ongoing debate about whether Ethereum or Bitcoin is a better investment continues between different communities. This time around, it is being put to the test using MicroStrategy’s crypto investments over the years. Microstrategy currently has a loss of 130,000 BTC it purchased over time, which makes it the most prominent public company holding the largest amount of bitcoin. What if they had instead invested in Ethereum?

Ethereum is the Better Bet

MicroStrategy has increased its BTC purchases over the past two years. This amount reached billions of US dollars in just over two years. MicroStrategy has approximately $4B to acquire the 130,000 BTC. Even though the coins are being purchased over time at various prices, the company still records a loss of more than $1B at current bitcoin price.

It is interesting to see how the company continues to support bitcoin and continue investing in it. Specifically, bitcoin’s largest competitor Ethereum.

No surprise that Ethereum outperforms bitcoin more than any other cryptocurrency. MicroStrategy could be better off if they had made an investment in Ethereum, as the numbers show.

Ethereum price chart from TradingView.com

 Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com

According to Blockchain Center, MicroStrategy’s profit if the company had purchased ETH would have been $1.47B. The company would be worth approximately $5.6 billion if it kept track of all its purchases over time.

Even at the peak of MicroStrategy’s BTC holdings, the comparison shows that ETH would still have performed way better. In December when MicroStrategy’s holdings were worth just under $8 billion, it would have been worth $16 billion with ETH. Additionally, if MicroStrategy had made an investment in Ethereum, and then staked its ETH, the company would have made approximately $380m since that time. 

MicroStrategy Bitcoin vs Ethereum

 Source: Blockchain Center| Source: Blockchain Center

It would be 1,692,762 ETH if all BTC held by the company was converted to ETH. The company would make an additional $134million in revenue annually from stakes alone, at a 4% rate.

Read Related Reading: Ethereum Should Hold $1500 To Avoid a Decline to $1300

This comparison shows the different profitability levels of each digital asset over the past year. Both in the short and long term, Ethereum continues to beat bitcoin. Ex-CEO at MicroStrategy Michael Saylor stated that Bitcoin remains the most attractive crypto asset.

Featured image by Forkast News. Chart by TradingView.com

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