Your $1,000 Bitcoin investment since Tesla bought it now

Bitcoin BTC/USD reached record highs in March 2024, with expectations for further growth ahead of the 2024 presidential election.

Let’s revisit Tesla Inc TSLA‘s cryptocurrency purchases and the potential profits for investors who followed their lead.

What’s Notable: While MicroStrategy has held Bitcoin since 2020, Tesla made its significant purchase of $1.5 billion worth in January 2021, announcing it publicly in February.

Tesla’s announcement on Feb. 8, 2021, boosted Bitcoin’s price, marking it as a major influence in the crypto market.

In the first quarter of 2021, Tesla reported selling $272 million in Bitcoin, positively impacting its profits.

By the second quarter of 2022, Tesla had sold 75% of its Bitcoin, raising $936 million in cash.

Recently, Tesla has reported having $184 million in “digital assets,” which may include Bitcoin and Dogecoin DOGE/USD, usable for Tesla purchases.

Tesla indicated it might adjust its digital asset holdings based on business needs and market outlook.

There are recent reports of Tesla moving Bitcoin to unknown wallets, hinting at a possible sale.

Here’s Bitcoin’s performance since Tesla’s investment:

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Investing $1,000 in Bitcoin: In 2022, Bitcoin’s value dropped due to macroeconomic challenges and the FTX bankruptcy.

Fast forward to 2024, Bitcoin hit new highs, partly due to approved Bitcoin ETFs leading to increased institutional buying.

After Tesla’s announcement on Feb. 8, 2021, Bitcoin surged to $46,203.93.

A $1,000 investment at that peak could have bought 0.0216 BTC, now worth $1,468.65 — a 46.9% increase.

Conversely, if $1,000 were invested in Tesla stock, it would now be worth $758.39, a 24.2% loss.

Although Bitcoin has performed better than Tesla stock since the announcement, it has not done as well as the SPDR S&P 500 ETF Trust SPY, which would be valued at $1,491.58 today — a 49.2% increase, outperforming Bitcoin.

Investors who bought Bitcoin have outperformed many stocks and market indexes over various periods, but not from the day of Tesla’s purchase announcement.

Michael Saylor of MicroStrategy urged Musk to invest in Bitcoin in December 2020. Had Musk taken that advice, the returns would have been greater.

Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.

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This article was published by Benzinga and updated.