Bitcoin BTC/USD reached an all-time high in March 2024, possibly heading for more gains ahead of the 2024 presidential election.
This article reflects on Tesla’s TSLA investment in Bitcoin and its impact on investors.
Background: Tesla bought $1.5 billion worth of Bitcoin in January 2021, which helped drive the cryptocurrency’s price higher.
In the first quarter of 2021, Tesla sold $272 million worth of Bitcoin, positively affecting its profitability.
In 2022, Tesla sold 75% of its Bitcoin holdings for $936 million in cash.
Currently, Tesla reports $184 million in “digital assets” that may include Bitcoin and Dogecoin DOGE/USD.
Tesla has indicated it might alter its digital asset holdings based on market conditions.
Recently, there was speculation about Tesla moving Bitcoin to unknown wallets, suggesting a potential sale.
Bitcoin Investment: Despite a dip in 2022 due to macroeconomic factors and events like the FTX bankruptcy, Bitcoin rebounded, hitting new highs in 2024 after Bitcoin ETFs gained approval.
On February 8, 2021, Bitcoin’s price jumped to $46,203.93, thanks to Tesla’s announcement.
Investing $1,000 in Bitcoin at that peak would be worth $1,468.65 today, a 46.9% increase.
In comparison, a $1,000 investment in Tesla stock would now be worth $758.39, a 24.2% decrease.
While Bitcoin has outperformed Tesla, it hasn’t done as well as the SPDR S&P 500 ETF Trust SPY, which would have grown to $1,491.58, a 49.2% increase.
Bitcoin has generally performed better than many top stocks and indexes over time, but during the period of Tesla’s investment disclosure, it didn’t.
Michael Saylor from MicroStrategy suggested Elon Musk invest in Bitcoin back in December 2020; following this advice would have yielded even better returns.
Bitcoin’s latest all-time high was $73,750.07 on March 14, 2024.
Read Next:
This article was previously published by Benzinga and has been updated.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
`
