Bitcoin (BTC/USD) reached new all-time highs in March 2024, potentially increasing further before the 2024 presidential election.
Here’s a summary of Tesla Inc’s (TSLA) Bitcoin investment and its impact on investors.
Tesla’s Investment: Tesla disclosed in February 2021 that it purchased $1.5 billion in Bitcoin in January 2021, which helped drive Bitcoin’s price up.
In Q1 2021, Tesla sold $272 million of its Bitcoin, positively affecting its profits. By Q2 2022, Tesla had sold 75% of its Bitcoin for $936 million in cash.
Tesla currently shows $184 million in “digital assets” on its balance sheet, which may include Bitcoin and Dogecoin (DOGE/USD).
Tesla noted it could change its digital asset holdings based on business needs. Recently, Tesla moved its Bitcoin to different wallets, possibly indicating a sale.
Bitcoin Performance: Despite a dip in 2022 due to market challenges, Bitcoin hit new highs in March 2024 after Bitcoin ETFs were approved.
On February 8, 2021, Bitcoin peaked at $46,203.93 after Tesla’s announcement. An investment of $1,000 at that time could now be worth $1,468.65, a 46.9% gain.
If invested in Tesla stock, that $1,000 would now be worth $758.39, a 24.2% loss. Bitcoin has outperformed Tesla stock but not the S&P 500 ETF, which gained 49.2% over the same period.
Some investors may have done better with the S&P 500 compared to Bitcoin since Tesla’s purchase annoucement. Michael Saylor of MicroStrategy had encouraged Elon Musk to invest in Bitcoin earlier, which could have yielded more for Tesla.
Bitcoin’s all-time high reached $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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