After Microstrategy executive chairman Michael Saylor revealed that the company now holds 226,500 BTC worth $13.4 billion, it turns out that the company's bitcoin (BTC) holdings have returned 61%. Interestingly, while blockchaincenter.net's 'There Is No Second Best' index once suggested that investing in ethereum might have been a wiser choice for Microstrategy, the gap has now narrowed. Currently, investing in ether would only be 63% more valuable than their bitcoin holdings.
Minus Possible Staking Returns, Microstrategy's Bitcoin Holdings Now Parallel to Ether's Theoretical Returns
In the first week of December 2023, Microstrategy's bitcoin (BTC) investment increased by 30%. At the time, blockchaincenter.net's 'No Second Best Option' index showed that if the company had chosen ethereum (ETH) instead, its return would have been 71%. However, the tables have turned and ether has now seen a significant drop in value compared to BTC.
Eight months ago, Microstrategy (MS) held 174,530 BTC. Fast forward to today and the company has increased its holdings to 226,500 BTC, currently worth $13.4 billion. MS paid $8.353 billion for the coins, an average of $36,907 per coin. According to the 'No Second Best' index, if MS had dollar-cost averaged into ether instead of bitcoin, the company would have bought 5,210,397 ETH, currently worth two percent more than the company's BTC investment.
If MS had chosen ETH, its holdings would have increased by approximately $206 million compared to its BTC investment. Alternatively, if MS had invested in ether and staked the asset immediately, MS would have had an additional 535,672 ETH, adding $1.39 billion to the $206 million profit from just holding ETH. Instead of holding 226,500 BTC worth $13.4 billion, MS could have held 5.74 million ETH, which would be worth $14.9 billion today.
What do you think about the returns Microstrategy has made from its bitcoin investment? If you were in their shoes, would you go the bitcoin route or opt for ethereum? Share your thoughts and opinions in the comments section below.
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