Bitcoin (BTC/USD) reached new highs in March 2024 and may rise further before the 2024 presidential election.
This article reviews Tesla’s Bitcoin purchase and its impact on investors.
Purchase Overview: Tesla bought $1.5 billion in Bitcoin in January 2021, announcing it on February 8, 2021. This purchase significantly boosted Bitcoin’s price.
Later, Tesla sold $272 million of its Bitcoin in Q1 2021, positively affecting quarterly profits.
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 has indicated it might adjust its digital asset holdings based on market conditions.
Recently, Tesla reportedly moved its Bitcoin to unknown wallets, suggesting a potential sale.
Bitcoin’s performance since Tesla’s purchase:
- Investing $1,000 in Bitcoin: In 2022, Bitcoin prices dipped due to macroeconomic factors and events like the FTX bankruptcy.
In March 2024, Bitcoin reached new heights, boosted by Bitcoin ETFs. On February 8, 2021, after Tesla’s announcement, Bitcoin surged to $46,203.93.
A $1,000 investment on that day would now be worth $1,468.65 (up 46.9%). In comparison, $1,000 in Tesla stock would now be worth $758.39 (down 24.2%).
However, Bitcoin has not outperformed the SPDR S&P 500 ETF Trust (SPY), which would now be worth $1,491.58 (up 49.2%).
Despite better performance over time in general, Bitcoin’s growth since the Tesla purchase announcement has been modest.
In December 2020, Michael Saylor of MicroStrategy encouraged Tesla’s Elon Musk to invest in Bitcoin, which could have yielded greater returns if acted upon earlier.
Bitcoin hit an all-time high of $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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