Bitcoin (BTC/USD) reached new highs in March 2024, potentially rising further before the 2024 presidential election.
Tesla Inc (TSLA) made headlines by purchasing Bitcoin in January 2021, impacting investor returns.
What Happened: Although MicroStrategy was a pioneer in holding Bitcoin, Tesla followed up by investing $1.5 billion in the currency, announced on February 8, 2021, causing Bitcoin prices to spike.
Tesla sold $272 million of its Bitcoin early in 2021, positively affecting its profits.
In 2022, Tesla sold 75% of its Bitcoin for $936 million, leaving $184 million in “digital assets” on its balance sheet, possibly including Bitcoin and Dogecoin (DOGE/USD).
Tesla may adjust its digital asset holdings based on market conditions. Recently, they moved Bitcoin to different wallets, suggesting a potential sale.
Investing $1,000 in Bitcoin: After a downturn in 2022 due to macro issues and the bankruptcy of FTX, Bitcoin soared to new highs in 2024, especially after Bitcoin ETFs gained approval.
After Tesla’s purchase, Bitcoin jumped to $46,203.93. A $1,000 investment then would now be worth $1,468.65, a 46.9% gain, while a similar investment in Tesla stock would be worth only $758.39, a 24.2% loss.
In comparison, a $1,000 investment in the SPDR S&P 500 ETF Trust (SPY) would be valued at $1,491.58 today, reflecting a 49.2% increase, outperforming Bitcoin since Tesla’s disclosure.
Investors in Bitcoin generally have better returns than top stocks and indexes over various periods, except on the date of Tesla’s announcement.
Michael Saylor of MicroStrategy advised Elon Musk to invest in Bitcoin back in December 2020, which could have yielded better results.
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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