MicroStrategy (formerly Strategy) 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.

Strategy (formerly MicroStrategy) would have secured a much larger profit if committed to investing in XRP, rather than Bitcoin (BTC).

The latest market crash brought Bitcoin’s price to a new yearly low. Afterwards, Bitcoin recovered immediately to trade above the $80,000 pivotal level again.

However, the world’s leading cryptocurrency is still in a critical position, and at the time of writing, it is currently changing hands at $81,800 with a 5.89% price decline over the past seven days.

As the crypto market experiences a downturn, Strategy’s performance in its Bitcoin investment has been low 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.

But currently, this profit has reduced to about $7.7 billion, as the worth of Strategy’s total Bitcoin holdings slumps to $40.8 billion. While this profit is still huge, some members of the XRP community have pointed out how the software development company would have secured much greater profit if it had focused on investing in XRP.

Interestingly, we recently evaluated these claims and found an element of truth. For context, Strategy 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.

If Strategy 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 (CRYPTO: XRP) held 42.4 billion XRP as of December 2024. Strategy’s 47.285 billion XRP holding would have made it the largest XRP holder, putting it above 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 analysis confirms that an XRP strategy would have benefited MicroStrategy more, it still does not accurately measure 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.