No Diversification, No Problem: Strategy’s BTC Play Beats an ETH Alternative

CN
6 hours ago

Michael Saylor’s Strategy has accumulated approximately 499,096 BTC, and its bitcoin position remains in positive territory relative to the company’s acquisition cost. Despite recent price fluctuations over the past few days, the firm’s BTC reserves remain 29% above the purchase price. Strategy initially spent $33.087 billion to amass its bitcoin, an investment now valued at $42.813 billion at prevailing market rates, according to data collected by blockchaincenter.net.

No Diversification, No Problem: Strategy’s BTC Play Beats an ETH Alternative

Source: blockchaincenter.net

The decision to concentrate solely on bitcoin has proven advantageous. Had the company opted for ethereum (ETH) instead, its holdings would currently be at a loss. With an initial outlay of nearly $33.1 billion, an equivalent ETH position would now be worth only $27.4 billion—a 17% decline. Instead of securing a $9.7 billion gain, the firm would be grappling with a $5.7 billion deficit.

No Diversification, No Problem: Strategy’s BTC Play Beats an ETH Alternative

MSTR shares on March 4, 2025.

Even if Strategy had staked its hypothetical ethereum holdings—accumulating an additional 631,758 ETH in rewards—the total valuation would still fall short, reaching just $28.734 billion. Meanwhile, MSTR shares have continued their upward trajectory, gaining more than 11% this week and appreciating over 8% against the U.S. dollar on Mar. 4, just two and a half hours before Wall Street’s closing bell.

However, on a year-to-date basis, MSTR remains down nearly 9%, with a decline exceeding 19% over the past month. By Tuesday afternoon at 2:20 p.m. Eastern Time (ET), shares were trading at $277, marking a 28.45% drop from the company’s all-time high of $387.

Contrasting Ethereum’s hypothetical losses, the firm’s BTC-centric approach exemplifies targeted conviction over diversification. As share prices oscillate between weekly surges and broader downturns, the company navigates crypto’s unpredictability by anchoring its fortunes to bitcoin’s evolving narrative. Thus far, Strategy’s BTC acquisition decisions have proven successful.

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