Bitcoin (BTC/USD) reached new highs in March 2024, potentially rising further before the 2024 presidential election.
Background: Tesla (TSLA) purchased Bitcoin in January 2021, which helped boost its price and drew investor interest.
Tesla bought $1.5 billion in Bitcoin and announced its investment on February 8, 2021. This purchase was seen as a significant step for cryptocurrency.
Later, Tesla sold $272 million of its Bitcoin, positively impacting its quarterly profits, and in 2022, it sold 75% of its holdings for $936 million.
More recently, Tesla reported $184 million in “digital assets,” potentially including both Bitcoin and Dogecoin (DOGE/USD), which can be used in its online store.
Tesla indicated it might adjust its digital asset holdings depending on the market and business needs, with reports suggesting potential movement of its Bitcoin assets.
Bitcoin Performance: After falling in 2022 due to macroeconomic issues and the FTX bankruptcy, Bitcoin hit new highs in 2024 following ETF approvals.
Upon Tesla’s announcement on February 8, 2021, Bitcoin’s price surged to $46,203.93. A $1,000 investment at that time would now be worth $1,468.65, showing a 46.9% increase.
In contrast, a $1,000 investment in Tesla stock would have decreased to $758.39, a 24.2% loss. Furthermore, the SPDR S&P 500 ETF Trust (SPY) would have grown to $1,491.58, a 49.2% gain, outperforming both Bitcoin and Tesla stock.
While Bitcoin has generally outperformed many stocks and indexes, this wasn’t the case immediately following Tesla’s purchase announcement. Michael Saylor from MicroStrategy urged Elon Musk to invest in Bitcoin earlier, which could have led to greater returns for Tesla.
As of March 14, 2024, Bitcoin reached an all-time high of $73,750.07.
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This article was published by Benzinga and has been updated.
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