The American business intelligence company MicroStrategy ranks among the pioneer institutions to change some of their balance sheets into Bitcoin (BTC). These companies changed some of their balance sheets to the crypto citing the asset’s strong store of value features.
Nonetheless, new data shows that the firm stood a larger chance of more profits in case it had opted to go for Ethereum (ETH). In that case, MicroStrategy may have recorded nearly 108.72% or an extra $3 billion in profits as of November 6 by investing in ETH, data by Blockchain Center’s Rohmeo_de shows.
Particularly, as of September 20, 2022, the firm had a Bitcoin haul of 130,000 BTC with a market value of around $2.76 billion by the time of publication. Nevertheless, if that amount was invested in Ethereum, it could control nearly 3,542,000 ETH valued at $5.77 billion.
MicroStrategy’s History With Bitcoin
Notably, MicroStrategy has accumulated Bitcoin in various phases of market cycles. As reported by Finbold, the firm used the current bear market to add more Bitcoin, with former CEO Michael Saylor maintaining that the asset is the strongest store of value and hedge against inflation apart from being ‘second to none’.
Concurrently, MicroStrategy has incurred huge losses on its Bitcoin investment. In the second quarter of this year, MSTR reported quarterly revenue of $122.1 million against expectations of $126 million, with a $918.1 million loss. In that context, $917.8 million of the losses was attributed to its Bitcoin holdings.
In other news, the firm has received a lot of criticism for the Bitcoin option, with ‘The Black Swan’ author Nassim Nicholas Taleb recently mocking Saylor by saying that his exit from the helm of MicroStrategy was another massive blow to the firm’s skepticism of not selling Bitcoin despite the persistent bear market.
Ethereum’s Potential
Based on the profit potential, Ethereum seems to live up to its latest expectation amid some intensive network development. So far, Ethereum has undergone various upgrades, like the Merge that pushed the blockchain to a Proof-of-Stake (PoS) status.
Because of the accompanying deflationary features, the historic upgrade has been touted to make Ethereum attractive to institutions.
Moreover, because of Ethereum’s decentralized nature and great energy efficiency, a market segment thinks that the token is poised to surpass Bitcoin as the leading crypto. Despite recently recording a minor price rally, Bitcoin’s continued plunge in market dominance helps the flipping notion.
Buy Bitcoin NowNotably, the plunge in dominance comes as more altcoins continue to be the center of attention. Amid the variance in possible profits, Bitcoin and Ethereum still maintain a bullish sentiment. By the end of this year, projections show that Bitcoin might soon regain the critical support level of $25,000. Based on reports that emerged on October 27, Ethereum might reclaim the $3,000 level by 2023.
Generally, both assets continue being weighed down by the current market conditions resulting in a drop from considerable levels. Currently, Bitcoin is trying to sustain recent gains, trading at $21,210, while Ethereum was valued at $1,608.
