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By The Numbers: How Much MicroStrategy Would Have Lost If It Had Invested In Gold Instead Of Bitcoin

  • September 6, 2021
  • Posted by: admin
  • Category: BitCoin, Blockchain, Cryptocurrency, Investments
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A little over a year ago, Bitcoin was still recovering from one of its worst declines in the past year. At the same time, the first cryptocurrency was about to enter a new age of adoption that would drive it to new all-time highs within the next months.

From a yearly low in 2020 of around $3,700 per BTC to $10,000 in September 2020, to $51,670, at the time of writing. Bitcoin has proven why is one of the best-performing assets of the decade with a 478% profit since mid-last year.

Bitcoin BTC BTCUSD
BTC with minor gains in the daily chart. Source: BTCUSD Tradingview

Around this time, from March to June 2020, software company MicroStrategy was buying its first coins to integrate BTC into its treasury. The company’s CEO Michael Saylor celebrated this decision in a recent post via his Twitter account.

According to Saylor, the world economy is trending towards inflation due to the monetary policies adopted by the main central banks. Thus, he decided to place a lot of the company’s value into a store of value.

Related Reading | How Bitcoin Has Boosted MicroStrategy’s Brand by 100x, CEO Reveals

When deciding if it was going to be either gold or Bitcoin, the executive opted for the latter due to its characteristics. Saylor is a known Bitcoin bull and, so far, its bet has paid off.

As the chart below shows, if MicroStrategy would have invested in Gold rather than Bitcoin, the over $2 billion initial investment would have lost 80% of its value in one year. In the past 30 days, it would have lost 21% of its value.

Bitcoin BTC BTCUSD
Source: Michael Saylor via Twitter

Data from monitor BitcoinTreasuries.org indicates that MicroStrategy owns over 100,000 BTC or 0.5% of its total supply. As seen above, this investment has seen a 376.34% appreciation in one year.

MicroStrategy Outperforms Gold Due To Its Bitcoin Investment

Additional data provided by Ecoinometrics suggest a correlation between MicroStrategy (MSRT) share performance and the price of Bitcoin. Since the company launched its BTC treasury program, its shares have experienced a 428% rally.

Bitcoin and MicroStrategy have managed to outperform two of the most important stock indexes, the NASDAQ and the SP500. The former has a 68.3% profit while the latter records a 54.8% profit since the software company announced its BTC treasury program.

MicroStrategy has become a BTC’s price proxy for many companies, banks, and hedge funds looking to legally gain exposure to the cryptocurrency. As Bitcoinist reported, giants such as BlackRock, Capital Group, Morgan Stanley, The Vanguard Group, and others have massive positions in the company.

MicroStrategy and its CEO have been subject to suspicion from many in the crypto community. Many expect the company to “dump” their BTC into the market when the opportunity arises. To those statements, Saylor has replied that he plans to hold Bitcoin “forever”.

Related Reading | MicroStrategy Completes Bitcoin Rookie Year, How The Company Started A Whole Movement

No doubt, the company started a movement that has led BTC to new highs in terms of price and adoption. Tomorrow, El Salvador will officially embrace the Bitcoin Standard. The country has been officially added to the list of entities holding BTC right below MicroStrategy, Tesla, Square, and others.

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