Bitcoin BTC/USD reached new highs in March 2024, spurred by actions leading up to the 2024 presidential election.
This recap focuses on Tesla’s TSLA cryptocurrency purchases and their impact on investors.
Tesla’s Purchase: Tesla revealed in February 2021 that it bought $1.5 billion in Bitcoin. This move significantly boosted Bitcoin’s price, marking a key event for cryptocurrency.
Tesla later sold $272 million worth of Bitcoin, which positively impacted its quarterly profits.
In 2022, Tesla sold 75% of its Bitcoin for $936 million, showing ongoing interest in digital assets, including Dogecoin DOGE/USD.
Reports suggest Tesla may be shifting its Bitcoin holdings, hinting at a potential sale.
Bitcoin’s Performance: Bitcoin struggled in 2022 due to macro issues, but hit new highs in March 2024 after Bitcoin ETFs gained approval.
After Tesla’s purchase on Feb. 8, 2021, Bitcoin soared to $46,203.93. A $1,000 investment then would now be worth $1,468.65, a 46.9% gain.
In contrast, a similar investment in Tesla stock would be worth $758.39, down 24.2% during the same period.
However, Bitcoin hasn’t outperformed the SPDR S&P 500 ETF Trust SPY, which would be worth $1,491.58 today, a 49.2% increase.
While Bitcoin has excelled over many periods, the timeframe of Tesla’s purchase isn’t one of them. If Tesla had listened to MicroStrategy’s Michael Saylor’s advice in December 2020 to invest sooner, they’d have gained even more.
Bitcoin reached 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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