Notch Lost over $21B

In 2014, Markus “Notch” Persson, the creator of Minecraft, became an overnight billionaire when he sold Mojang, the studio behind the iconic game, to Microsoft for $2.5 billion. Fast forward a decade to 2025, and Notch’s net worth is reported at just $1.3 billion, according to Forbes. What went wrong?

In a twist of financial irony, Persson’s decision to take cash instead of Microsoft stock—and his subsequent financial choices—ultimately cost him an eye-watering $21 billion. Here’s a breakdown of the missteps that led to this staggering loss and the lessons investors should learn from his experience.

The Microsoft Deal: A Pivotal Decision

When Microsoft acquired Mojang in 2014, Notch had a choice: take $2.5 billion in cash or opt for payment in Microsoft stock. He chose the former. At the time, this decision seemed reasonable—cash is liquid, and liquidity offers flexibility. But let's break down what he missed:

• Microsoft’s stock price in 2014: $46 per share.

• $2.5 billion in Microsoft stock would have bought approximately 54 million shares.

Had he chosen stock instead of cash, those 54 million shares would be worth over $21 billion today, based on Microsoft’s stock price of $383.45 USD per share as of March 2025.

The Opportunity Cost: $21 Billion

By opting for cash, Notch forfeited the opportunity to capitalize on Microsoft’s extraordinary growth. As the company has flourished—driven by its dominance in cloud computing, the success of Azure, and AI innovations—his original stake in Microsoft would have appreciated significantly. Notch missed out on more than $21 billion in unrealized gains.

The $1.3 Billion Reality: What Happened to the Cash?

Forbes estimates Notch’s current net worth at $1.3 billion, but even after accounting for taxes (Sweden's capital gains tax rate is approximately 30%), the story doesn’t quite add up. So, where did the money go?

• Extravagant spending: Notch indulged in a lavish lifestyle, purchasing a $70 million mansion in Beverly Hills, luxury cars, and hosting extravagant parties.

• Lack of reinvestment: Instead of growing his wealth through diversified investments—such as tech stocks, ETFs, or real estate—he parked much of his fortune in low-yield, underperforming assets.

• No “second act”: Unlike other tech founders who reinvest their wealth in startups or emerging ventures, Notch stepped away from the industry entirely, missing out on opportunities for additional growth.

In short, while Microsoft's stock price soared, Notch’s cash-centric approach, paired with his lack of diversification, eroded his wealth.

The Missed Opportunities: Bitcoin, Tech Stocks, and More

Had Notch diversified even a portion of his $2.5 billion into other high-growth assets, his wealth would look vastly different today:

• Bitcoin: In 2014, Bitcoin was trading at approximately $500 per coin. A $100 million investment would have purchased 200,000 BTC. At Bitcoin’s 2021 peak of $69,000, that stake would have been worth $13.8 billion.

• Tech stocks: Apple, Amazon, and Tesla all saw exponential growth post-2014, with their stock prices increasing by 10 to 50 times. A diversified portfolio of these assets could have easily doubled or tripled Notch’s wealth.

• Microsoft itself: Even if Notch had kept just 10% of his payout as stock, he would have an estimated $2.2 billion today.

• Venture Capital: By investing in emerging tech startups, Notch could have continued to grow his wealth and stayed at the forefront of innovation, like other tech billionaires who turned to VC.

• Real Estate Investments: Instead of purchasing a luxury mansion, Notch could have invested in high-growth real estate markets or commercial properties, which typically appreciate over time and generate passive income.

Instead, Notch’s decision to take cash left him exposed to inflation, taxes, and lifestyle creep—factors that erode wealth over time.

Key Takeaways: Lessons for Founders and Investors

Notch’s story highlights several critical financial lessons:

1. Equity > Cash in Growth Acquisitions: Accepting stock in a proven, high-growth company (like Microsoft) aligns you with long-term gains. Cash is static and gets eroded by inflation; equity compounds.

2. Diversify or Risk Erosion: Concentrating wealth in one asset class, particularly cash, is a surefire way to see purchasing power decline over time. A diversified portfolio of growth assets can outpace inflation and preserve wealth.

3. Engage a Financial Strategist: Billionaires rarely leave their financial future to chance. Notch’s lack of a reinvestment strategy cost him billions. Professional guidance could have helped safeguard his wealth.

4. Avoid the “Rich Person” Trap: Flashy purchases and an inflated lifestyle may feel gratifying in the moment, but they rarely contribute to long-term wealth building.

Is It Fair to Criticize Notch?

Critics may argue that hindsight is always clearer. Microsoft’s stock could have plummeted, or Bitcoin might not have reached its astronomical peaks. However, at the time, Microsoft was a blue-chip technology company with a proven track record of growth, making stock a relatively safe bet. The lesson here isn’t about predicting the future—it’s about managing risk through diversification.

Notch himself has commented on his contentment, saying, “The problem with getting everything is you run out of reasons to keep trying.” But for the rest of us, his experience serves as a powerful cautionary tale about the cost of complacency in wealth management.

The Bottom Line

Markus Persson didn’t just miss out on $21 billion—he passed up the chance to become one of the wealthiest figures in tech history. The takeaway? Wealth isn’t just about what you make. It’s about what you keep, grow, and reinvest.

Next time you’re faced with a choice between cash and equity, think twice. Your future self may thank you for it.

Despite the missed opportunities, it’s important to remember that Minecraft remains one of the greatest games ever created. Its cultural impact, lasting popularity, and continued success are a testament to Markus "Notch" Persson’s visionary creation, and no financial misstep can take that away.

While people often see Notch as a genius billionaire, the reality is he made some serious financial missteps. He’s known for creating one of the most successful games in history, but when it comes to wealth management, he definitely messed up.

TL;DR: In 2014, Markus Persson chose $2.5 billion in cash from Microsoft over stock. Had he taken the stock, it would be worth $21 billion today. Combined with poor diversification and lavish spending, he lost out on $21+ billion. The lesson: Diversify and think long-term. Don’t make the same mistake.