At 1:19 p.m. Eastern Time on Sunday, June 11, 2023, Microstrategy, a publicly-listed company, had 140,000 bitcoin (BTC) on its balance sheet. Despite this impressive figure, a data analyst at blockchaincenter.net compiled metrics that reveal the company’s investment has decreased in value by 14%. The data also indicates that if Microstrategy had invested in ethereum (ETH) instead of BTC, the company’s portfolio would have increased by 54%.
Blockchaincenter.net’s ‘There Is No Second Best’ Data Set
Microstrategy, a company that offers business intelligence, mobile software, and cloud-based services, currently holds the largest amount of bitcoin (BTC) among publicly listed firms. In April, the company acquired an additional 1,045 BTC, bringing its total stash to an even 140,000. However, recent statistics reveal that the value of Microstrategy’s bitcoin portfolio has decreased by 14% as of Sunday. This means that the company’s cache, which was purchased for $4.206 billion, is now worth $3.631 billion.
There is no second best. #Bitcoin
— Michael Saylor⚡️ (@saylor) October 8, 2021
Archived blockchaincenter.net statistics reveal that Microstrategy’s portfolio would have been more profitable today if the company had invested in ethereum (ETH) instead of bitcoin (BTC). This data set, called “There is no second best,” challenges the opinion of Microstrategy’s founder, Michael Saylor, who believes that BTC is the leading crypto asset and that there is no second best. The creator of the data set, Holger from blockchaincenter.net, collected these metrics because he considers himself a “data nerd” and believes that claiming “there is ‘no second best crypto asset’ is a bit of a stretch.”
Holger’s chart paints an entirely different picture of what could have been for Microstrategy if the company had invested in ether instead of bitcoin. According to the data, if Microstrategy had purchased ether, the company would now hold 3,681,627 ETH, and its portfolio would be valued at $6.461 billion. This means that instead of experiencing a 14% loss, the investment in ether would have resulted in a $2.255 billion in profit for the company. However, that’s not all that Microstrategy missed out on. By staking its ether stash, the company could have earned an additional 326,225 ether, resulting in a staking profit of around $572.5 million at an annual percentage rate (APR) of 4%.
Holger’s data set reveals yet another interesting fact: if Microstrategy were to trade its BTC for ETH today, the company would receive 2,069,232 ether using today’s exchange rates. This ethereum portfolio would generate an estimated $182 million per year from staking, which Holger insists is more operating income than Microstrategy has ever had. However, it’s highly unlikely that Saylor and his company will switch over to ETH, as he holds BTC in the highest esteem.
It’s worth noting that the data presented by Holger on blockchaincenter.net is subject to change over time. However, the data set also acknowledges that Michael Saylor’s decision to “convert his company cash (and more) into bitcoin could have been (and still can be) the greatest decision ever.” While the data suggests that investing in ETH could be a lucrative move for Microstrategy today, it’s important to remember that the crypto market is subject to change at any moment. Ultimately, only time will tell which crypto asset will come out on top.
What are your thoughts on Microstrategy’s investment choice in bitcoin and the potential profitability of ethereum? Share your thoughts and opinions about this subject in the comments section below.