Bitcoin BTC/USD reached new highs in March 2024, likely influenced by the upcoming 2024 presidential election.
Here’s a recap of Tesla’s investment in Bitcoin and potential gains for investors.
Overview: MicrStrategy led the way in Bitcoin investments in 2020, but Tesla purchased $1.5 billion worth in January 2021, revealed in February 2021. This purchase positively impacted Bitcoin’s price.
Tesla sold $272 million of its Bitcoin in early 2021, benefiting its profits, and later sold 75% of its holdings in Q2 2022, generating $936 million.
As of recent quarters, Tesla reported $184 million in “digital assets” on its balance sheet, which may include Bitcoin and Dogecoin DOGE/USD.
Tesla mentioned it could adjust its digital asset holdings based on market conditions.
Recently, Tesla moved its Bitcoin to unknown wallets, hinting at a possible sale.
Performance since Tesla’s purchase:
- Investing $1,000 in Bitcoin: After falling in 2022 due to market issues, Bitcoin rebounded in 2024 following the approval of Bitcoin ETFs.
Bitcoin hit $46,203.93 on Feb. 8, 2021, after Tesla’s announcement. A $1,000 investment then would now be worth $1,468.65, a 46.9% increase.
If invested in Tesla stock, that $1,000 would only be $758.39 today, down 24.2%. However, the SPDR S&P 500 ETF Trust would be worth $1,491.58 now, showing a 49.2% gain, outperforming both Bitcoin and Tesla stock since the announcement.
While Bitcoin’s overall gains are notable, it has not outperformed the S&P 500 since the time of Tesla’s purchase.
Michael Saylor of MicroStrategy had urged Elon Musk to invest Tesla’s cash in Bitcoin in December 2020. This could have led to bigger returns for Tesla and its investors.
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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