Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

How Much MicroStrategy Would Have Lost Investing In Gold Instead of Bitcoin

How Much MicroStrategy Would Have Lost Investing In Gold Instead of Bitcoin

Bitcoin was in a recovery from one of its worst declines, little over a year ago. But, it was about to enter a new age of adoption that would drive it to new all-time highs within the next months.

Bitcoin is one of the best-performing assets of the decade with a 478% profit since mid-last year: from a yearly low in 2020 of around $3,700 per BTC to $10,000 in September 2020, to $52,500, at the time of writing.

Around March 2020, software company MicroStrategy started 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, who had held a lot of cash assets in the company, realized that the world economy is trending towards inflation due to the monetary policies adopted by the main central banks. He decided to place a lot of the company’s value into a store of value.

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.

Gold vs Bitcoin for MicroStrategy

If MicroStrategy had 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.

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

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. Giant investment houses such as BlackRock, Capital Group, Morgan Stanley, The Vanguard Group, and others have significant positions in the company.

MicroStrategy and its CEO Saylor 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”.

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

Source: How Much MicroStrategy Would Have Lost Investing In Gold Instead of Bitcoin – Fintechs.fi
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×