MicroStrategy Could Have Made This Much Had It Invested In Ethereum, Not Bitcoin

A crypto analyst was quick to point out that MicroStrategy MSTR would have made significant gains if it had invested in Ethereum ETH/USD rather than the apex cryptocurrency Bitcoin BTC/USD.

This comes days after the firm's third-quarter fiscal report was released.

What Happened: The Blockchain Center has posted a comparison chart for MicroStrategy’s crypto investments. It has compared MicroStrategy’s Bitcoin purchases with what would have happened if they had purchased Ethereum instead. 

See More: Is Ethereum a good investment?

The company currently holds 130,000 BTC and is the largest corporate holder of the asset. That purchase, which cost $250 million in August 2020, is now worth $2.63 billion.

According to the comparison webpage, MicroStrategy would have gained $1.47 billion if it had chosen Ethereum instead.

It should be noted that MicroStrategy posted a loss of $727,000 on its Bitcoin holdings in the third quarter, according to its latest earnings report.

Why It Matters: If MicroStrategy had bought ETH at the same time it bought BTC, it would now have 3.54 million ETH, as per the Blockchain Center analyst. This would be worth $5.45 billion, twice as much as its BTC holdings. 

With ETH staking included, MicroStrategy would have earned an extra 239,690 ETH, worth around $370 million. Furthermore, converting BTC holdings to ETH right now would result in 1.7 million ETH. Staking this would earn MicroStrategy $132 million annually (approximated at about 4% APY). “There has never been this much-operating income,” said 'Holger,' the analyst who created the page.

Price Action: At the time of writing, Bitcoin is trading at $20,582.19, up 1.30% in the last 24 hours. Ethereum was trading at $1,580.17, up 1.84% in the last 24 hours, according to Benzinga Pro.

Read Next: Dogecoin Plunges, Bitcoin, Ethereum Firm: Analyst Says Watch Out For This Memecoin Pattern Before Friday Jobs Data