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
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×