Benzinga - MicroStrategy Inc (NASDAQ:MSTR), a business analytics firm, has once again found its Bitcoin (CRYPTO: BTC) holdings in a profitable position, thanks to the climb in Bitcoin’s value above the $30,000 threshold on Friday.
What Happened: This resurgence in the cryptocurrency’s worth was fueled by renewed hopes for Securities and Exchange Commission (SEC) ETF approval and market optimism following the dismissal of charges against two Ripple executives in the XRP (CRYPTO: XRP) lawsuit.
MicroStrategy disclosed its acquisition of Bitcoin, investing approximately $147.3 million in late September to secure 5,445 BTC at an average purchase price of $27,053. Notably, considering that MicroStrategy’s total Bitcoin holdings were acquired at an average price of approximately $29,582 per coin, the company has amassed a profit of roughly $17.82 million, resulting in a 12% profit as per data from the ‘Saylor Tracker.’
Michael Saylor, MicroStrategy’s CEO, has been a vocal advocate for Bitcoin, highlighting its superiority to gold as a store of value.
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Why It Matters: Data from blockchiancenter.net reveals an interesting perspective: If MicroStrategy had chosen to invest in Ethereum (CRYPTO: ETH) instead of Bitcoin, they would now possess 3.97 million ETH, which is currently valued at $6.674 billion (42% increase). In this scenario, MicroStrategy’s profit would have amounted to $1.959 billion, significantly higher than the $0.086 billion profit achieved with BTC holdings.
Furthermore, if MicroStrategy had opted for staking, they would have earned an additional 383,107 ETH at a 4% rate, presently worth $643.8 million. The total ETH holdings, including staked ETH, would then amount to 4.35 million ETH, valued at $7.318 billion.
Considering the current market conditions, if MicroStrategy were to exchange its BTC holdings for ETH, it could still acquire 2.85 million ETH. This decision would generate an annual revenue of $240 million through staking alone.
Price Action: At the time of writing, BTC was trading at $30,348.88, up 1.70% in the last 24 hours, according to Benzinga Pro.
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