Home Crypto Exchanges MicroStrategy’s Missed Opportunity: XRP Investment Could Have Yielded $50B+

MicroStrategy’s Missed Opportunity: XRP Investment Could Have Yielded $50B+

XRP Investment

MicroStrategy, the software development firm renowned for its aggressive Bitcoin acquisition strategy, might have seen much higher profits had it invested in XRP instead of Bitcoin. As Bitcoin and XRP communities grow more polarized, speculations around the inclusion of XRP in the U.S. strategic reserve, following President Trump’s recent crypto executive order, have fueled new debates about the potential future of these digital assets.

MicroStrategy’s Bitcoin Investments and Profits

MicroStrategy’s venture into Bitcoin began in August 2020 when it acquired 21,454 BTC for $250 million at an average price of $11,652 per coin. By January 2025, the company’s Bitcoin holdings, totaling approximately 450,000 BTC, were valued at $45.3 billion, generating a profit of over $17 billion. Their largest acquisitions came in December 2024, when they spent $2.1 billion and $1.5 billion to buy over 37,000 BTC at prices above $97,000 per coin.

These numbers highlight the software company’s bet on Bitcoin, which they expected to outperform traditional assets. Despite this significant investment, MicroStrategy’s profit pales in comparison to what they could have achieved with XRP.

Hypothetical XRP Investment Could Have Delivered $50B+ Profit

Matt Hamilton, former Ripple and current Arbitrum developer advocate, recently pointed out that if MicroStrategy had instead invested $28.2 billion in XRP, it would have made far greater returns. By purchasing XRP at various price points from August 2020 to January 2025, MicroStrategy could have accumulated over 31 billion XRP, which would now be worth a staggering $79 billion.

Breaking down the hypothetical purchases:

  • August 2020: MicroStrategy could have acquired 869.6 million XRP for $250 million, at an average price of $0.2875 per coin.
  • December 2024: Two major purchases would have netted 612.9 million XRP for $2.1 billion at $2.1994 per coin, and 646.3 million XRP for $1.5 billion at $2.3207.
  • January 2025: A $243 million investment could have secured 96.9 million XRP at $2.5064 per coin.

These hypothetical purchases would have led to a profit of $50.4 billion — over $33 billion more than MicroStrategy’s Bitcoin holdings. This substantial difference is garnering attention in the crypto world, especially as Bitcoin maximalists argue the superiority of BTC over other cryptocurrencies.

Bitcoin vs. XRP: Community Reactions

The disclosure triggered a variety of reactions within the crypto community. Arniel Sia, a prominent Bitcoiner and founder of Siacfo, argued that XRP’s price has failed to recover from its 2017 high of $3.84, unlike Bitcoin, which has surpassed its previous peak. Sia emphasized that Bitcoin is not just a tool for increasing dollar wealth, but rather a hedge against inflation and a store of value outside of fiat currency systems.

Hamilton, however, countered by highlighting XRP’s fixed supply and its resilience to debasement, which he believes makes it a valuable asset despite its lower historical highs. This debate has only fueled the ongoing tensions between Bitcoin supporters and those backing XRP, as each side makes their case for the long-term value of their chosen digital asset.

Conclusion

The contrast between Bitcoin’s performance and the potential return from XRP highlights an ongoing discussion about which digital asset has the best future prospects. While Bitcoin continues to be the dominant player in the market, the XRP community remains bullish, especially with the possibility of it playing a central role in the U.S. strategic reserve.

As speculation grows over the future of cryptocurrencies like XRP, MicroStrategy’s decision to continue accumulating Bitcoin may not necessarily have been the most profitable one in hindsight. It will be interesting to see how future developments, including regulatory changes and adoption rates, will shape the trajectory of Bitcoin, XRP, and other digital assets.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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