In a recent post on X, Matt Hamilton, former Ripple developer, shared that if the same amount had been invested in XRP instead of BTC, Strategy's portfolio could be worth nearly double. Hamilton's analysis reviews the long-term performance of the tokens and claims that XRP has outperformed BTC over the years.
Upon closer examination, the annual gain of the altcoin reaches an impressive 513%, significantly surpassing Bitcoin's 96%. Hamilton notes that despite market volatility, the risk-return profile of the altcoin has been more robust during the same period. While Bitcoin maximalists still argue that BTC remains the safest digital asset, Hamilton points to the growing adoption and use cases of XRP as evidence of overlooked potential.
Strategy currently holds over 601,000 BTC, acquired for approximately $42.87 billion. At recent market prices, this stock is valued at over $71 billion, resulting in an unrealized gain of approximately $29.4 billion for the company. Strategy's latest purchases include 4,980 BTC for $531.9 million, with an average price exceeding $106,000 per Bitcoin.
Michael Saylor, president of Strategy, remains one of the leading advocates for Bitcoin. His social media posts often urge his followers to buy more BTC, underscoring the company's conviction that the currency is a long-term investment for corporate treasuries. With 12 consecutive weeks of BTC purchases this year, the goal of 600,000 BTC has been reached.
Backing Hamilton's claim that an XRP-focused strategy could have had better results, several public companies are now issuing treasury bonds dedicated to XRP.
Trident, listed on Nasdaq, announced its intention to raise $500 million to establish one of the largest corporate XRP treasuries in the world. Similarly, VivoPower has already raised $121 million for its XRP-focused strategy, which aims to facilitate practical applications of decentralized finance (DeFi).
Meanwhile, Webus International also submitted an application to the SEC to establish a $300 million reserve of XRP, and Ault Capital Group, from Hyperscale Data, intends to buy $10 million worth of XRP to boost a blockchain lending platform. Even Worksport Ltd. has allocated $5 million to create an XRP treasury, diversifying along with smaller positions in BTC.
Overall, the altcoin is becoming increasingly popular among institutions, surpassing Bitcoin in popularity. Many companies are not only buying XRP to hold it but are also using it in their products and services.
Hamilton's figures present an interesting hypothetical scenario. While Strategy's focus on Bitcoin is impressive, buying XRP could have generated significantly higher returns due to its substantial gains and growing institutional interest.
