Bitcoin BTC/USD reached new highs in March 2024, possibly rising further before the 2024 presidential election.
This article reviews Tesla Inc’s TSLA investment in Bitcoin and its potential profits for investors.
Background: Tesla bought $1.5 billion in Bitcoin in January 2021, which it revealed to investors on February 8, 2021. This purchase helped increase Bitcoin’s price.
Tesla later sold $272 million of its Bitcoin, positively impacting its quarterly profits with $128 million in proceeds.
In 2022, Tesla sold 75% of its Bitcoin for $936 million cash.
Currently, Tesla reports $184 million in “digital assets,” possibly including Bitcoin and Dogecoin DOGE/USD. The company may adjust its digital assets based on market conditions.
Recent reports suggest Tesla is moving its Bitcoin, which might indicate another sale.
Investing $1,000 in Bitcoin: Bitcoin dropped in 2022 due to macroeconomic challenges and events like the FTX bankruptcy.
By March 2024, Bitcoin hit $73,750.07. If you invested $1,000 on February 8, 2021, when Bitcoin was $46,203.93, it would now be worth $1,468.65, a 46.9% increase.
In contrast, a $1,000 investment in Tesla stock would be worth $758.39 today, down 24.2%. However, investing in the SPDR S&P 500 ETF Trust SPY would have produced a $1,491.58 return, up 49.2%.
Overall, Bitcoin has performed better than many stocks, but not compared to the S&P 500 during this timeframe.
MicroStrategy’s co-founder, Michael Saylor, urged Elon Musk to invest in Bitcoin in December 2020. Doing so would have yielded better returns for Tesla and its investors.
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This article was updated from Benzinga.
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