MicroStrategy’s $1.99B Bitcoin Impairment Loss Could Be Avoided If Invested in Ethereum

According to MicroStrategy Inc.’ (NASDAQ: MSTR) third-quarter 2022 financial results, the company is counting an impairment loss of approximately $1.99 billion on its Bitcoin holding. However, a study conducted by blockchaincenter.net has revealed that MicroStrategy’s crypto investment could be worth $ 5.598 billion if Michael Saylor Michael Saylor   Michael Saylor is a co-founder of Strategy (formerly MicroStrategy). Before founding Microstrategy, he was a rocket scientist and studied aeronautics and astronautics at MIT on an Air Force scholarship. He dubs Bitcoin 'Digital Gold'.   He made some early investment in Bitcoin as soon as he realized it was going to be the next big thing in shaping decentralized finance from traditional finance. His firm Strategy has made Bitcoin their primary treasure reserve.   Quick Facts   Full Name Michael J. Saylor Birth 04-02-1965 in Lincoln, Nebraska Education BSc from MIT Marital Status To be updated / Unmarried Nationality American Net Worth $8.4B (Feb. 20205, Refer for realtime)   As per Forbes, Saylor bought another 17,732 bitcoins for $175 million in October 2020. Forbes covered Michael Saylor on its front page and called him "The Bitcoin Alchemist" as the latter's Net Worth hit a whopping $7.6B in January 2025.   Michael Saylor – Career Timeline   1983–1987: Studied Aeronautics & Astronautics and Science, Technology & Society at Massachusetts Institute of Technology (MIT). 1989: Co-founded MicroStrategy (Strategy). 1998: MicroStrategy IPO – Took MicroStrategy public on the NASDAQ at $12 per share. 2000: Accounting Scandal & Crash – MicroStrategy's stock plunged 62% in a day due to an accounting misstatement, wiping out billions in valuation. 2004–2019: MicroStrategy Rebuilds – Worked towards cloud-based analytics and AI-driven business intelligence, regaining stability. 2020: Bitcoin Strategy & Investment – Led MicroStrategy’s $425M Bitcoin investment. He made it the first publicly traded company to adopt Bitcoin. 2021: Bitcoin Evangelism – Became one of Bitcoin’s most vocal advocates, encouraging corporations and institutions to adopt BTC and blockchain. 2022: Stepped Down as CEO – Transitioned to Executive Chairman to focus entirely on Bitcoin strategy.   With a major focus on blockchain network growth, Saylor is considered one of the architects in shaping the growth of decentralized finance.   Useful Links to connect with Michael Saylor   Platform Link to connect Twitter (X) Michael Saylor MicroStrategy (Strategy) Official Website MicroStrategy Michael Saylor’s YouTube Channel https://www.youtube.com/c/MichaelSaylor Hope.com (Bitcoin Education by Saylor) Bitcoin is Hope     msaylor@microstrategy.com EntrepreneurCrypto and Blockchain ExpertAuthor purchased Ethereum.

The business intelligence company is under a heavy spotlight from global investors closely monitoring Bitcoin and digital assets. The company’s commitment to Bitcoin may become its worst enemy as other digital assets gain more traction against the former. Moreover, many digital assets have outperformed Bitcoin in the past two bull markets.

As such, Kelvin O’Leary, aka Mr. Wonderful, has argued that it is best to approach investors with a portfolio mindset.

Nonetheless, Saylor has remained steadfast on Bitcoin support and its prospects. In his defence, leading developer Vitalik Buterin Vitalik Buterin   Vitalik Buterin is a well-known tech geek, influencer, and computer programmer. To promote the blockchain, he started Bitcoin Magazine and provided blockchain information for cryptocurrency investors. In 2015, he co-founded Ethereum, a blockchain platform that contributed to decentralized finance.   Quick Facts   Full name Vitaly Dmitrievich Buterin Birth 31-01-1994, Kolomna, Russia Education University of Waterloo Wife/Partner To be updated / Not Married Famous for Ethereum, ETH, Blockchain advocate/promoter  Net Worth $1B (refer for realtime)   Buterin recognized the need for decentralized finance and used smart contracts to publish the Ethereum whitepaper.  His contributions paved the way for Ethereum's transition to Proof-of-Stake, which proved to be scalable and effective. Furthermore, he introduced Ether (ETH), the blockchain platform's native coin. A Timeline of Vitalik’s Career Co-founded Bitcoin Magazine (2011) – Established one of the first crypto publications, writing extensively on Bitcoin and blockchain. Authored Ethereum Whitepaper (2013) – Proposed a blockchain with smart contract functionality for decentralized applications (dApps). Co-founded Ethereum (2015) – Launched Ethereum after a successful $18M ICO, revolutionizing the blockchain ecosystem. Developed Ethereum Virtual Machine (2015–2016) – Created the EVM, enabling developers to build and deploy smart contracts. Worked on Ethereum Scalability (2017–2021) – Contributed to Layer 2 solutions like Rollups, Plasma, and Sharding. Led Ethereum’s Transition to Proof-of-Stake (2018–2022) – Helped develop and implement Ethereum 2.0, merging the Beacon Chain in 2022. Blockchain Research & Cryptography (2016–Present) – Focused on zk-SNARKs, privacy tech, and decentralized governance models. Philanthropy & Crypto Advocacy (2017–Present) – Donated millions in crypto for pandemic relief, AI research, and financial inclusion.   Key Achievements of Ethereum's Co-founder   Year  Achievements Details 2014 Thiel Fellowship Awarded a $100,000 grant by Peter Thiel to work on Ethereum. 2018 Fortune 30 Under 30 Recognized as one of the most influential young leaders in technology. 2018 World Technology Award in IT Software Honored for contributions to blockchain and Ethereum’s development. 2021 Time 100 Most Influential People Recognized for his impact on the global crypto and blockchain ecosystem. 2022 Ethereum’s Transition to Proof-of-Stake Successfully led Ethereum’s transition from Proof-of-Work to Proof-of-Stake.   Other Useful links to connect with Vitalik Buterin   Platform Link X (formerly Twitter) https://twitter.com/VitalikButerin GitHub https://github.com/vbuterin Ethereum Official Website https://ethereum.org Vitalik’s Blog https://vitalik.ca     EntrepreneurCrypto and Blockchain Expert argued that the earliest projects in an industry are the most ‘genuine’. In that case, bitcoin org bitcoin org - Event OrganiserTechnologyPayment solution is almost six years older than Ethererum, which was launched around 2015.

Should MicroStrategy Diversify its Crypto Holdings Ahead?

MicroStrategy has largely influenced global hedge funds, institutional investors, and retail traders’ approach to digital assets. Furthermore, the company’s market capitalization is largely valued in Bitcoin. According to market data provided by MarketWatch, MicroStrategy has a valuation of approximately $2.81 billion.

However, new data contradicts MicroStrategy’s approach to digital assets investment. According to blockchauncenter.net, MicroStrategy’s crypto investment would be approximately $1.615 billion up if Saylor focused on Ethereum.

From another perspective, MicroStrategy could have earned as much as 239,690 ETH if Saylor purchased and staked Ether back in 2020. Additionally, if MicroStrategy converted its Bitcoin holding to ETH now and staked all, then annual revenue from staking would be $134 million.

The case would further be ballooned should MicroStrategy diversify its crypto portfolio on altcoins, which have outperformed both Bitcoin and Ethereum. Nonetheless, Bitcoin and Ethereum are the most regulated digital assets globally, with the former already used as legal tender in two countries.

Notably, crypto regulations have been deemed as the next hurdle to global mass adoption. Perhaps, Saylor’s laser focus on Bitcoin is due to its deep liquidity, utility value, and future growth prospects. Furthermore, Saylor has indicated that MicroStrategy is a long-term Bitcoin holder.

Meanwhile, MSTR shares are trading down approximately 68 percent in the past year, and another 54% dip YTD.