Invested $1,000 in Bitcoin when Tesla did? See the value now

Leading cryptocurrency Bitcoin (CRYPTO: BTC) hit new all-time highs in March 2024 and could be headed to higher highs ahead of the 2024 presidential election.Here's a look back at the purchase of the cryptocurrency by Tesla Inc (NASDAQ:TSLA) and how much investors could have made following the lead of the electric vehicle company.What Happened: While MicroStrategy may have led the way with adding Bitcoin to their balance sheet and holding the leading cryptocurrency since 2020, Tesla is not far behind with a purchase that was made in January 2021 disclosed in February 2021 to investors.Tesla announced on Feb. 8, 2021 that it purchased $1.5 billion worth of Bitcoin. The purchase helped boost the price of Bitcoin that day as it was viewed as a key catalyst for the future of cryptocurrency.Tesla later announced it sold $272 million of its Bitcoin in the first quarter, which it said had a "positive impact" on its quarterly profitability with $128 million in proceeds from Bitcoin.In fiscal 2022, Tesla announced the sale of 75% of its Bitcoin during the second quarter, bringing in $936 million in cash to its ...Full story available on Benzinga.com

By admin

October 17, 2024

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Bitcoin (BTC/USD) reached new highs in March 2024 and may rise further before the 2024 presidential election.

This article reviews Tesla’s Bitcoin purchase and its impact on investors.

Purchase Overview: Tesla bought $1.5 billion in Bitcoin in January 2021, announcing it on February 8, 2021. This purchase significantly boosted Bitcoin’s price.

Later, Tesla sold $272 million of its Bitcoin in Q1 2021, positively affecting quarterly profits.

In 2022, Tesla sold 75% of its Bitcoin, generating $936 million. Currently, Tesla lists $184 million in “digital assets,” likely including Bitcoin and Dogecoin (DOGE/USD).

Tesla has indicated it might adjust its digital asset holdings based on market conditions.

Recently, Tesla reportedly moved its Bitcoin to unknown wallets, suggesting a potential sale.

Bitcoin’s performance since Tesla’s purchase:

Investing $1,000 in Bitcoin: In 2022, Bitcoin prices dipped due to macroeconomic factors and events like the FTX bankruptcy.

In March 2024, Bitcoin reached new heights, boosted by Bitcoin ETFs. On February 8, 2021, after Tesla’s announcement, Bitcoin surged to $46,203.93.

A $1,000 investment on that day would now be worth $1,468.65 (up 46.9%). In comparison, $1,000 in Tesla stock would now be worth $758.39 (down 24.2%).

However, Bitcoin has not outperformed the SPDR S&P 500 ETF Trust (SPY), which would now be worth $1,491.58 (up 49.2%).

Despite better performance over time in general, Bitcoin’s growth since the Tesla purchase announcement has been modest.

In December 2020, Michael Saylor of MicroStrategy encouraged Tesla’s Elon Musk to invest in Bitcoin, which could have yielded greater returns if acted upon earlier.

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

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