MicroStrategy $1.6 Billion Better off Buying ETH Instead of BTC, Data Shows

Michael Saylor’s business intelligence firm MicroStrategy started buying bitcoin (BTC) in August 2020 and has so far poured roughly $4 billion into the flagship digital asset. However, following the recent bear market, the company’s bitcoin investment currently sits on a paper loss of $1.3 billion. 

Despite these losses, Saylor has remained bullish on bitcoin, saying that the digital asset has no alternative. However, recent data indicates that Saylor’s claims of bitcoin having no alternative is not entirely true.

What if MicroStrategy Had Bought ETH Instead of BTC?

Recent data compiled by Blockchain Center indicated that if MicroStrategy had tried an alternative by betting on ether (ETH) instead of BTC, it would have made roughly $1.6 billion in profit during the same period.

The data revealed that in addition to the $1.6 billion profit, MicroStrategy would have also earned passive yield by staking ETH.

If Ethereum staking is included, the company would have earned another $381.1 million worth of ETH during that same period, the report said.

Per estimates, Ethereum stakers currently earn more than 4% annually, which means if MicroStrategy decided to swap its BTC to ETH now, then stake it, the company will realize $134 million profit annually. According to the report, the Virginia-based company never had this much operating income.

As Ethereum fundamentals build up, the second largest digital assets have continued to outperform Bitcoin in recent months due to several factors including ETH slowing supply post-merge, reduced selling pressure, and reduced supply issuance.

Since the recent rally began in late October, ETH has gained 17% of its value so far compared to BTC gaining just 6%.

MicroStrategy Reports $27M Loss in Q3 2022

Meanwhile, the latest report comes just a few days after MicroStrategy released its earnings report for the third quarter of 2022. The Virginia-based company reported a net loss of $27 million in the third quarter, a progression from the $1.1 billion net loss it recorded in the second quarter of this year.

The report shows that the company currently holds 130,000 bitcoins after buying 301 BTC in September. 

The value of its BTC holding currently stands at approximately $2.7 billion with a $727,000 impairment charge, the report stated.