Saylor's MicroStrategy Bitcoin Bag Balloons By $900M: Could Ethereum Have Been The Better Bet?
Portfolio Pulse from Mehab Qureshi
MicroStrategy Inc (NASDAQ:MSTR) has reported a paper gain of $900 million on its 158,400 Bitcoin (BTC) holdings, due to the recent surge in Bitcoin’s price. The company added 6,067 BTC to its holdings in the third quarter, despite recording a net loss of $143.4 million. The current value of the holdings stands at $5.640 billion, reflecting a 20% increase. However, had MicroStrategy invested the same amount in Ethereum (ETH), they would now possess 3,971,678 ETH, resulting in a value of $7.40 billion.
November 02, 2023 | 4:34 am
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NEUTRAL IMPACT
Had MicroStrategy invested the same amount in Ethereum as it did in Bitcoin, the company would now possess a significantly larger amount of the cryptocurrency.
The news that MicroStrategy could have made a significantly larger gain had it invested in Ethereum instead of Bitcoin may lead to increased interest in Ethereum. However, as the company did not actually make this investment, the impact on the price of Ethereum is likely to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Bitcoin's recent price surge has led to a substantial gain for MicroStrategy, which holds a large amount of the cryptocurrency.
The news of MicroStrategy's substantial gain on its Bitcoin holdings is likely to be viewed positively by investors, potentially leading to an increase in the price of Bitcoin in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
MicroStrategy's Bitcoin holdings have gained $900M due to recent price surge. However, had the company invested in Ethereum, the value would have been $7.4B.
The news of MicroStrategy's substantial gain on its Bitcoin holdings is likely to be viewed positively by investors, potentially leading to an increase in the company's stock price in the short term. However, the fact that the company could have made a significantly larger gain had it invested in Ethereum instead may lead to questions about the company's investment strategy.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100