Bitcoin (BTC/USD) reached new highs in March 2024 and may continue to rise ahead of the 2024 presidential election.
Here’s a summary of Tesla Inc’s (TSLA) Bitcoin purchase and its significance for investors.
Overview: Tesla bought $1.5 billion worth of Bitcoin in January 2021, which was revealed to investors in February. This purchase helped boost Bitcoin’s price.
In the first quarter, Tesla sold $272 million of its Bitcoin, impacting its profitability positively. In 2022, Tesla sold 75% of its Bitcoin for $936 million.
Currently, Tesla lists $184 million in “digital assets,” including Bitcoin and Dogecoin (DOGE/USD), which can be used for purchases on Tesla’s website.
Tesla noted it might adjust its digital asset holdings based on business needs and market analysis. There are reports of Tesla moving its Bitcoin to unknown wallets, hinting at a potential sale.
Bitcoin Investment: Bitcoin fell in 2022 due to economic issues and events like the FTX bankruptcy. However, it reached new all-time highs in March 2024 after Bitcoin ETFs gained approval, increasing institutional interest.
Bitcoin rose to $46,203.93 on February 8, 2021, right after Tesla’s announcement. A $1,000 investment at that price would now be worth $1,468.65, a gain of 46.9%.
If invested in Tesla stock instead, the $1,000 would be worth $758.39, down 24.2%. In comparison, a $1,000 investment in the SPDR S&P 500 ETF Trust (SPY) would be worth $1,491.58, up 49.2%, showing better performance than both Bitcoin and Tesla.
Bitcoin has generally performed well compared to top stocks and market indexes, except on the day Tesla disclosed its Bitcoin purchase.
Michael Saylor from MicroStrategy had previously advised Elon Musk to invest in Bitcoin, which could have yielded greater returns for Tesla.
Bitcoin hit an all-time high of $73,750.07 on March 14, 2024.
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This article was previously published by Benzinga and has been updated.
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