Bitcoin BTC/USD reached new highs in March 2024 and may rise further as the 2024 presidential election approaches.
This article reviews Tesla Inc’s TSLA Bitcoin purchase and the potential profits for investors following their lead.
What’s Noted: Although MicroStrategy was the first to buy Bitcoin, Tesla followed with a purchase in January 2021 announced on February 8, 2021.
Tesla bought $1.5 billion in Bitcoin, which helped increase Bitcoin’s price, signaling strong future demand for cryptocurrencies.
In Q1 2021, Tesla sold $272 million worth of Bitcoin, positively impacting its profits.
In 2022, Tesla sold 75% of its Bitcoin, generating $936 million.
Recently, Tesla reported $184 million in “digital assets” on its balance sheet, which may include both Bitcoin and Dogecoin DOGE/USD.
Tesla hinted it might adjust its digital assets as needed based on market conditions.
Reports suggest Tesla is moving its Bitcoin to unknown wallets, possibly indicating a future sale.
Investing $1,000 in Bitcoin: Bitcoin declined in 2022 due to economic factors and the FTX bankruptcy.
By March 2024, Bitcoin reached $73,750.07, spurred by Bitcoin ETF approvals.
On February 8, 2021, Bitcoin rose to $46,203.93 after Tesla’s announcement, up from $39,621.84 the day before.
A $1,000 investment in Bitcoin at that time would now be worth $1,468.65, a 46.9% increase, while the equivalent investment in Tesla stock would now be worth $758.39, down 24.2%.
Compared to the SPDR S&P 500 ETF SPY, which would now be worth $1,491.58 (up 49.2%), Bitcoin has not outperformed this index.
Although Bitcoin has outperformed many major stocks over time, the period immediately after Tesla’s purchase is not one of them.
MicroStrategy’s co-founder Michael Saylor had previously urged Elon Musk to invest in Bitcoin back in December 2020, which could have resulted in even greater returns for Tesla.
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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