Bitcoin BTC/USD reached new highs in March 2024, with potential for more growth before the 2024 presidential election.
This recap looks at Tesla Inc’s TSLA Bitcoin purchase and the potential gains for investors who followed their lead.
What Happened: MicroStrategy initially led Bitcoin purchases but Tesla’s entry in January 2021 was announced in February 2021.
Tesla bought $1.5 billion worth of Bitcoin on Feb. 8, 2021, boosting its price and signaling strong future interest in cryptocurrency.
In the first quarter, Tesla sold $272 million of Bitcoin, which positively impacted its profits.
In 2022, Tesla sold 75% of its Bitcoin for $936 million, and it currently holds $184 million in “digital assets,” likely including Bitcoin and Dogecoin DOGE/USD.
Tesla noted it can change its digital asset holdings depending on business needs and market conditions. Recent reports suggest Tesla may be moving its Bitcoin to unknown wallets, hinting at a possible sale.
Since Tesla’s investment, here’s how Bitcoin has performed:
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Investing $1,000 in Bitcoin: After a downturn in 2022 due to macroeconomic factors and events like the FTX bankruptcy, Bitcoin has rebounded in 2024, hitting new highs after Bitcoin ETFs were approved.
Following Tesla’s purchase announcement, Bitcoin surged to $46,203.93 from $39,621.84 the day before.
A $1,000 investment at that peak would have bought 0.0216 BTC, worth $1,468.65 today—an increase of 46.9%.
If the same $1,000 had gone into Tesla stock, it would now be worth $758.39, a drop of 24.2%.
Bitcoin has outperformed Tesla stock since the purchase announcement but lagged behind the SPDR S&P 500 ETF Trust SPY, which would have grown to $1,491.58—up 49.2%.
While Bitcoin has outperformed many stocks and indexes, the day of Tesla’s purchase disclosure was an exception.
MicroStrategy co-founder Michael Saylor urged Elon Musk to invest in Bitcoin in December 2020, which could have yielded better returns.
Bitcoin hit an all-time high of $73,750.07 on March 14, 2024.
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This article was originally published by Benzinga and has been updated.
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