Strategy (formerly MicroStrategy) would have secured a much larger profit if committed to investing in XRP rather than Bitcoin.
The latest market crash brought Bitcoin’s (BTC) price to new yearly lows below the pivotal $80,000 mark. Despite an immediate recovery above $80,000, Bitcoin remains in a critical position, currently changing hands at $81,800 with a 5.89% decline over the past seven days.
MicroStrategy’s Bitcoin Strategy
Amid this market downturn, the performance of Strategy’s Bitcoin investment has been low of recent despite maintaining impressive gains. For context, the firm holds 499,096 BTC, which it procured for about $33.1 billion.
Notably, at Bitcoin’s all-time high of $109,000, this holding would be worth $54.4 billion, yielding an unrealized profit of up to $21.3 billion for the Bitcoin strategy firm. However, currently, this profit has reduced to about $7.7 billion, as the worth of Strategy’s total Bitcoin holdings slump to $40.8 billion.
While the current profit still represents impressive gains, some XRP community figures have asserted how the software development company would have secured much greater profit had it turned its focus on XRP instead of Bitcoin.
Interestingly, The Crypto Basic recently evaluated these claims and found an element of truth. For context, MicroStrategy began its Bitcoin purchase campaign in August 2020 with a purchase of $250 million worth of BTC. Since then, it has committed $33.1 billion in the firstborn crypto asset, buying at an average price of $66,375.
MicroStrategy Profit if It Bought XRP Instead
Notably, if MicroStrategy had poured its $33.1 billion into XRP, especially during the period it amassed Bitcoin, its holdings would be worth more than the current value even with XRP’s 29% collapse last month.
For the sake of this assessment, we considered XRP’s average price since August 2020. Within this timeframe, the altcoin has traded at an average value of $0.7, with most of its time spent within the $0.5 to $0.55 region during the 2022 bear market.
Nonetheless, supposing Strategy purchased XRP at an average price of $0.7, the $33.1 billion would have procured 47.285 billion XRP tokens. Interestingly, according to the Q4 2024 markets report, Ripple held 42.4 billion XRP as of December 2024. Strategy’s 47.285 billion XRP holding would have made it the largest XRP holder, surpassing Ripple.
Meanwhile, these 47.285 billion XRP tokens are currently worth $101 billion amid XRP’s current price of $2.15. This translates to a yield of $67.9 billion, over $60 billion more profit than what Bitcoin currently boasts. Notably, at XRP’s mid-January peak price of $3.4, these holdings would be worth $160.769 billion.
However, while this assessment confirms that an XRP strategy would have benefited MicroStrategy more, it still does not accurately evaluate the potential profit due to the DCA factor. Also, a decision from MicroStrategy to invest in XRP since 2020 would have pushed XRP to a different position today, possibly higher.
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