UpdatesJun 14, 2023

ETH would bring 53% profit to MicroStrategy if it invested in Ethereum instead of Bitcoin

The company, whose executive chairman is Michael Saylor, has 140,000. BTC coins in the balance.

Cryptocurrency analysts from the blockchaincenter.net platform took a close look at the data on a number of MicroStrategy investments in Bitcoin. Experts stated, among other things, that the decision to invest capital in Bitcoin brought the American company a loss of about 13% at the time of publication of the results of the investment analysis. In addition, analysts concluded that if the company chose ETH instead of BTC, it would gain as much as 53% on such an investment.

Is ETH a more attractive investment alternative than BTC?

MicroStrategy Executive Chairman and former CEO Michael Saylor has repeatedly stated in the past that Bitcoin is the leading asset in the world of digital currencies. Analysts from the blockchaincenter.net platform, however, would most likely disagree with this popular manager. These experts have compiled a careful breakdown of the Bitcoin purchases made by this American corporation. The indicator developed by them shows that this company, as a result of a series of its trading moves in the oldest cryptocurrency, recorded an unrealized investment loss.

MicroStrategy has invested more than $4.2 billion in the oldest digital currency so far, making cyclical purchases of more Bitcoin coins. The American company has accumulated as much as 140,000 BTC coins to date. At the current price level of the most important of the cryptocurrencies, the amount invested by Americans in fiat currency has decreased to around $ 3.6 billion. So that's a 13% decrease.

At this point, it is worth adding that experts from the platform mentioned above have clearly shown that if the American corporate giant invested in the second largest digital currency, buying it at the same time and for the same amount of dollars, this investment would bring profit to the company in the amount of as much as 53%. This is because in this way it would be possible to purchase 3,681,627 ETH coins for the same amount, with the value of these funds at the current Ether exchange rate of about $6.452 billion.

Analysts of the digital currency industry who are the authors of the aforementioned dataset assumed that Michael Saylor's belief that there is no competitive asset in the cryptocurrency area for BTC is absurd.

Exchange of Bitcoin for Ethereum could be profitable

Among other conclusions, the same experts expressed the view that if MicroStrategy decides to convert its BTC to ETH now, the company would receive roughly 2,069,232 Ether coins at the current exchange rate. Moreover, if this popular American corporation decided to become the validator of the Ethereum network, this amount of ETH coins could generate over $182 million in passive staking income annually.

Finally, it is worth bearing in mind that the future of digital currencies like Ethereum remains uncertain due to heavy shelling from the US Securities and Exchange Commission (SEC). This is due to the fact that this agency takes the position that among all cryptocurrencies, only Bitcoin can be classified as a commodity. For example, the US regulator imposed a significant financial penalty on the Kraken cryptocurrency exchange and prohibited it from offering its ETH staking service to US customers.