Bitcoin BTC/USD reached new highs in March 2024, potentially rising further before the 2024 presidential election.
This review focuses on Tesla Inc TSLA and its Bitcoin transactions, providing insights for investors.
Background: MicroStrategy was the first to invest in Bitcoin in 2020. Tesla followed by purchasing $1.5 billion in Bitcoin in January 2021, which they disclosed in February.
On February 8, 2021, Tesla’s Bitcoin purchase caused its price to spike, marking a significant point for cryptocurrency.
Tesla later sold $272 million of its Bitcoin in Q1, enhancing its profits by $128 million.
In 2022, Tesla sold 75% of its Bitcoin, generating $936 million.
Currently, Tesla lists $184 million in “digital assets,” likely including Bitcoin and Dogecoin DOGE/USD.
Tesla may adjust its digital asset holdings based on market conditions.
Recently, reports suggested Tesla moved its Bitcoin to unknown wallets, indicating a potential sale.
Bitcoin Investment: After a downturn in 2022, Bitcoin reached new highs in 2024 following the approval of Bitcoin ETFs.
On February 8, 2021, Bitcoin peaked at $46,203.93 after Tesla’s announcement. If you’d invested $1,000 then, it would be worth $1,468.65 today (up 46.9%).
In comparison, $1,000 invested in Tesla stock would now be worth $758.39 (down 24.2%).
While Bitcoin outperformed Tesla stock, it underperformed the SPDR S&P 500 ETF Trust SPY, which has grown to $1,491.58 (up 49.2%).
Investors buying Bitcoin have often beat top stocks and indexes, but this wasn’t the case on the day Tesla announced its purchase.
Advice: Michael Saylor from MicroStrategy suggested in December 2020 that Elon Musk invest in Bitcoin, which could have led to higher returns for Tesla.
Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.
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This article was updated from a previous publication by Benzinga.
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