Invested $1,000 in Bitcoin when Tesla did? Here’s your total

Bitcoin BTC reached new highs in March 2024, potentially climbing higher before the 2024 presidential election.

Let’s revisit Tesla’s Bitcoin investment to see how it benefited investors.

What Happened: While MicroStrategy started buying Bitcoin in 2020, Tesla revealed its $1.5 billion Bitcoin purchase in February 2021, which lifted Bitcoin’s price.

In Q1 2021, Tesla sold $272 million of its Bitcoin, boosting its profitability by $128 million.

Later, in Q2 2022, Tesla sold 75% of its Bitcoin for $936 million.

Currently, Tesla lists $184 million in “digital assets,” including Bitcoin and Dogecoin, which can be used for online purchases at Tesla.

Tesla noted it can adjust its digital asset holdings as needed based on market conditions.

Recently, it was reported that Tesla moved its Bitcoin to different wallets, hinting at a possible sale.

Bitcoin’s performance post-Tesla’s purchase:

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Investing $1,000 in Bitcoin: The value of Bitcoin dropped in 2022 due to economic issues and the FTX bankruptcy.

By March 2024, Bitcoin reached an all-time high of $73,750.07, following the approval of Bitcoin ETFs, which led to increased purchases by financial institutions.

After Tesla’s purchase on Feb. 8, 2021, Bitcoin rose to $46,203.93, from $39,621.84 the previous day. This means a $1,000 investment at that time could have bought 0.0216 BTC, now worth $1,468.65 (46.9% gain).

If you invested that $1,000 in Tesla stock, it would now be worth $758.39, a 24.2% loss.

While Bitcoin has performed better than Tesla stock since the announcement, it hasn’t outperformed the SPDR S&P 500 ETF Trust (SPY), which would have turned a $1,000 investment into $1,491.58 (49.2% gain).

Although Bitcoin has outperformed many stocks and indexes, it wasn’t the best choice the day Tesla made its investment.

In December 2020, MicroStrategy’s co-founder Michael Saylor urged Tesla CEO Elon Musk to invest in Bitcoin. Had Musk acted then, Tesla could have seen even greater returns.

Read Next:

• If You Invested $1,000 In Bitcoin When Warren Buffett Called It ‘Rat Poison Squared,’ Here’s How Much You’d Have Today

This article was previously published by Benzinga and has been updated.