Bitcoin BTC/USD reached new highs in March 2024, possibly due to the upcoming 2024 presidential election.
This article revisits Tesla Inc TSLA‘s Bitcoin investment and its impact on investors.
Tesla’s Investment: Although MicroStrategy led with Bitcoin purchases since 2020, Tesla announced a $1.5 billion Bitcoin purchase on February 8, 2021, boosting Bitcoin’s price.
Tesla later sold $272 million of Bitcoin in Q1, positively impacting its profits with $128 million.
In 2022, Tesla sold 75% of its Bitcoin for $936 million. Currently, it holds $184 million in “digital assets,” likely including Bitcoin and Dogecoin DOGE/USD.
Tesla noted it might adjust its digital asset holdings based on market conditions. Reports suggest Tesla is moving its Bitcoin to unknown wallets, possibly indicating a sale.
Bitcoin’s performance since Tesla’s purchase shows that a $1,000 investment on February 8, 2021, would now be worth $1,468.65, a 46.9% increase.
In comparison, a $1,000 investment in Tesla would be worth $758.39, down 24.2%. Bitcoin has outperformed Tesla stock but not the SPDR S&P 500 ETF Trust SPY, which is valued at $1,491.58 today, a 49.2% gain.
While Bitcoin has often excelled over stocks and indexes long-term, that wasn’t the case following Tesla’s disclosure.
Had Tesla invested in Bitcoin back in December 2020, when Michael Saylor urged Elon Musk to do so, their returns might have been even greater.
Bitcoin’s all-time high reached $73,750.07 on March 14, 2024.
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This article was originally published by Benzinga and has since been updated.
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