MicroStrategy, now rebranded as Strategy, has garnered significant attention for its pioneering embrace of Bitcoin as a corporate treasury asset, a move that has yielded substantial unrealized gains. However, a thought-provoking analysis from Matt Hamilton, a former Ripple developer now with Asimove Protocol, suggests the software giant may have potentially missed out on an additional $56.8 billion in returns by prioritizing BTC over XRP.
MicroStrategy’s Bitcoin Odyssey
Strategy embarked on its cryptocurrency journey on August 11, 2020, with an initial purchase of 21.454 BTC for $250 million, at an average price of $11.653. Their commitment deepened in December 2020 with an additional 29.646 BTC for $650 million, followed by 19.452 BTC for $1 billion in February 2021. By June 2021, the company had acquired 13.005 BTC at a price of $37.617 each, totaling $490 million.
More recently, Strategy continued its aggressive accumulation, securing 27.200 BTC for $2 billion in early November 2024, and another 20.356 BTC for nearly $2 billion in February 2025. Between July 7 and 13, 2025, the company added 4.225 BTC for $472 million. In total, Strategy’s portfolio now holds 601.550 BTC, acquired for nearly $43 billion. This substantial investment currently boasts a valuation of approximately $72 billion, translating to an impressive unrealized gain of roughly $29 billion.
The Hypothetical XRP Scenario
Hamilton’s analysis posits a compelling “what if” scenario: had Strategy allocated the same capital to XRP on the exact same dates, their investment could have theoretically swelled to nearly $130 billion. This figure would represent almost double the actual returns generated by their Bitcoin holdings, suggesting a potential $56.8 billion difference in favor of XRP.
Beyond Raw Returns: Navigating Liquidity and Regulatory Realities
While the potential for higher returns in XRP appears striking on paper, Hamilton is quick to highlight the critical practicalities that influence corporate treasury decisions. A key factor is market liquidity. Bitcoin currently commands a market capitalization of around $2 trillion, offering ample depth for large institutional transactions without significant price impact. In contrast, XRP’s market capitalization hovers closer to $40 billion. Pouring $43 billion into XRP simultaneously would almost certainly trigger extreme volatility, potentially sending its price soaring or crashing in unpredictable ways, undermining the very notion of a stable treasury asset.
Furthermore, corporate entities prioritize factors like regulatory clarity, custody solutions, and compliance. Bitcoin, with its well-established proof-of-work security and broad global acceptance, presents a relatively clear regulatory picture. XRP, however, has faced ongoing legal challenges in the US, creating an environment of uncertainty that many institutional investors are keen to avoid. This regulatory ambiguity presents a substantial risk profile that can outweigh the promise of higher hypothetical returns.
The Broader Implications of Corporate Crypto Adoption
It’s also worth noting that MicroStrategy’s decision to back Bitcoin wasn’t solely about maximizing profit; it was a strategic, bold statement. As the first publicly traded company to adopt Bitcoin as its primary treasury reserve, Strategy played a pivotal role in legitimizing digital assets for institutional investors. This groundbreaking move helped catalyze the development of Bitcoin ETFs, robust custodial services, and clearer accounting standards, paving the way for wider corporate adoption.
While an equally audacious bet on XRP might have similarly propelled that token, it could also have drawn intensified regulatory scrutiny and complex questions regarding audit treatment. A handful of firms, such as Everything Blockchain, Trident, Webus International, and VivoPower, have expressed interest in or made small allocations to XRP as a treasury asset. However, none have demonstrated the scale or public commitment seen from Strategy with Bitcoin.
Ultimately, choosing a reserve asset for a corporate treasury involves a multifaceted evaluation beyond mere speculative returns. Boards must carefully weigh volatility, legal risks, and the perception among shareholders. MicroStrategy’s journey underscores a strategic decision that, while potentially leaving some theoretical gains on the table, has delivered substantial real-world value while navigating the complex currents of the evolving digital asset landscape.
