{"id":69593,"date":"2022-11-04T17:51:22","date_gmt":"2022-11-04T15:51:22","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69593"},"modified":"2025-09-07T20:57:10","modified_gmt":"2025-09-07T17:57:10","slug":"experts-estimate-microstrategys-gains-from-investing-in-ethereum-instead-of-bitcoin","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/experts-estimate-microstrategys-gains-from-investing-in-ethereum-instead-of-bitcoin\/","title":{"rendered":"Experts estimate MicroStrategy&#8217;s gains from investing in Ethereum instead of Bitcoin"},"content":{"rendered":"<p>Experts from <a href=\\\"https:\/\/www.blockchaincenter.net\/en\/there-is-no-second-best\/\\\">Blockchain Center<\/a> calculated that MicroStrategy could have earned $1.6 billion instead of losing $1.3 billion if it had invested in Ethereum instead of Bitcoin, according to Blockchain Center.<\/p>\n<p>Led by Michael Saylor, the firm in August 2020 for the first time shifted part of its reserves into digital gold. The business analytics software company <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-becomes-the-first-nasdaq-listed-company-to-invest-part-of-its-capital-in-bitcoin\">purchased 21 454 BTC<\/a> (~$250 million at the time of the deal).<\/p>\n<p>After that MicroStrategy began following <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-bets-another-175-million-on-bitcoin\">the investment approach approved by the Chief Strategy Officer<\/a> for investing in Bitcoin not only through equity but also <a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-raises-650-million-for-bitcoin-purchase\">by attracting debt financing<\/a>.<\/p>\n<p><a href=\"https:\/\/u1f987.com\/en\/news\/microstrategy-adds-301-btc-for-6-million\">The most recent purchase of 301 BTC for $6 million<\/a> was made in September 2022. The volume of its crypto reserves reached 130 000 BTC, invested about $3.98 billion. The current value of the assets stands at around $2.66 billion.<\/p>\n<p>The Blockchain Center service uses the slogan on its MicroStrategy page: the phrase of Saylor&#8217;s ardent supporter of the first cryptocurrency:<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>There is no second best.<\/p>\n<\/blockquote>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">There is no second best. <a href=\\\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\\\">#Bitcoin<\/a><\/p>\n<p>\u2014 Michael Saylor\u26a1\ufe0f (@saylor) <a href=\\\"https:\/\/twitter.com\/saylor\/status\/1446441633139118125?ref_src=twsrc%5Etfw\\\">October 8, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n<\/p>\n<p>However, by their calculations, if the reserves had been invested in Ethereum instead of Bitcoin, they would now amount to 3,781,691 ETH ($5.9 billion), including staking income.<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh6.googleusercontent.com\/C70QLEHC2G8uA9d4XnRUI_PmAyfShLNFq8_kA8ZECfpqAE852NXW-PelpxSKNymr7fy5FdD3di1rdduriWsVKRQ9yA7WLK_7V-fTGMXu3ITwNrUC3xU46kojd_Qlv0ek27qE4zaP15o2H3t33Q3zvtUpnjaAQZXlk4Nd_zlM7HU0tcpkwLcV4FswPmjMjA\\\" alt=\\\"Experts calculate MicroStrategy's gains from Ethereum over Bitcoin\\\"\/><figcaption>Data: Blockchain Center.<\/figcaption><\/figure>\n<p>Even now, if it had converted the digital gold into the second-largest cryptocurrency, the firm would earn $133 million a year in passive income on the assets.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cMicroStrategy has never seen such a large operating profit,\u201d the experts emphasized.<\/p>\n<\/blockquote>\n<p>Arcane Crypto&#8217;s chief investment officer Eric Wall drew attention to the data. In the replies to his tweet, users noted that not only would the Ethereum allocation have been more profitable than Bitcoin.<\/p>\n<p>Independent developer Udi Wertheimer, for example, pointed to Solana and Dogecoin.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">and it\u2019s not just saylor<\/p>\n<p>if you DCA\u2019d into bitcoin over the last couple of years you\u2019re down horrendous, even if you started at $4,000<\/p>\n<p>if you DCA\u2019d anything else. \u2014 ETH, SOL, DOGE\u2026 you\u2019re up by a lot<\/p>\n<p>can\u2019t imagine why the plebs are so mad<\/p>\n<p>\u2014 Udi Wertheimer (@udiWertheimer) <a href=\\\"https:\/\/twitter.com\/udiWertheimer\/status\/1588400384313528320?ref_src=twsrc%5Etfw\\\">November 4, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n<\/p>\n<p>The SOL price rose from $4.44 on August 31, 2020 to $30.83 (up 594%), according to <a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/solana\\\">CoiGecko<\/a>. DOGE during this period rose from $0.003 to nearly $0.13 \u2014 up 4,233%.<\/p>\n<p>\\n\\n<\/p>\n<p>During that period, both assets climbed to their own peaks, with Dogecoin reaching $0.73 and Solana $260.<\/p>\n<p>\\n\\n<\/p>\n<p>The authors of Blockchain Center acknowledged that their retrospective analysis is hypothetical.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cSaylor&#8217;s decision to convert cash into Bitcoin could have been (and still could be) the greatest decision of all time. But saying &#8216;There is no second-best crypto asset&#8217; was, after all, a stretch, given the data,\u201d the experts concluded.<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>In August, Saylor <a href=\"https:\/\/u1f987.com\/en\/news\/michael-saylor-to-step-down-as-microstrategy-ceo\">left the post as MicroStrategy&#8217;s Chief Executive Officer<\/a> and became executive chairman.<\/p>\n<p>\\n\\n<\/p>\n<p>He <a href=\"https:\/\/u1f987.com\/en\/news\/michael-saylor-says-microstrategy-was-right-to-invest-in-bitcoin\">described the decision to move reserves into the leading cryptocurrency as correct and justified<\/a> despite the market downturn.<\/p>\n<p>\\n\\n<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our Telegram \u2014 cryptocurrency news, prices and analytics.<\/p>\n<p>\\n&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Experts from Blockchain Center calculated that MicroStrategy could have earned $1.6 billion instead of losing $1.3 billion if it had invested in Ethereum instead of Bitcoin.<\/p>\n","protected":false},"author":1,"featured_media":69594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1156,1208,1207,1138],"class_list":["post-69593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-institutional-investors-and-whales","tag-michael-saylor","tag-microstrategy","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69593"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69593\/revisions"}],"predecessor-version":[{"id":69595,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69593\/revisions\/69595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69594"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}