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Should MicroStrategy have invested in Ethereum instead of Bitcoin?

 


Blockchain Center created a theoretical comparison for MicroStrategy's crypto investments . The aim was to show how the investments would have played out if the company had bought Ethereum instead of Bitcoin.


MicroStrategy currently holds 130,000 BTC, making it the largest holding in this asset as a company . In August 2020, Michael Saylor made a quarter billion dollar investment, valued today at $2.63 billion.


Ethereum Fundamentals Improving: MicroStrategy Down

Had MicroStrategy invested in ETH instead of BTC at the same time, the company would now have 3.54 million ETH . At just under $5.45 billion, this sum is roughly twice the value of their current BTC holdings.


Mind you, these are pure profits from the investment without taking into account possible staking returns. Staking would add an additional 239,690 ETH worth around $370 million .


Currently, MicroStrategy could buy about 1.7 million ETH with its bitcoin. Staking these would bring the company $132 million annually (equivalent to about a 4% annualized return) .


Holger, analyst and creator of the platform , said: "MicroStrategy has never achieved such high profits to date."


Ethereum's fundamentals are steadily improving - three reasons are crucial for the outperformance against Bitcoin over the past month.


Since Ethereum now uses a Proof of Stake consensus, there is no selling pressure from miners. Furthermore, according to tracking platform Ultrasound.money , Ethereum is now a deflationary asset with supply growth of -0.09% per year . Finally , the network 's power consumption dropped by 99.9 % . This makes this investment opportunity much more attractive for companies and institutions that pay attention to ESG (environmental, social and governance).


Course outlook from ETH

According to Coingecko, ETH is up 20.6% in the past two weeks . In comparison, the Bitcoin price increased by just 6.8% in the same 14 days.


ETH price is currently holding around $1,549 but has been on a downtrend since the beginning of the month with the bear market rally weakening.


Currently, the entire crypto market is consolidating and Ethereum is no exception. Against this backdrop, the asset is unlikely to see a near-term recovery, but after the macro trend turns around, ETH could lead the bullish move .


DISCLAIMER

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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