Bitcoin BTC/USD reached new highs in March 2024, potentially rising further as the 2024 presidential election approaches.
Here’s a recap of Tesla Inc’s TSLA Bitcoin purchase and the impact on investors.
What Happened: Tesla announced a $1.5 billion Bitcoin purchase on February 8, 2021, which boosted Bitcoin’s price significantly.
In the first quarter of 2021, Tesla sold $272 million of its Bitcoin, benefiting its profitability.
By mid-2022, Tesla sold 75% of its Bitcoin for $936 million in cash.
Currently, Tesla reports $184 million in “digital assets,” possibly including Bitcoin and Dogecoin DOGE/USD.
Tesla may adjust its digital asset holdings based on market conditions.
Recent reports suggest Tesla is moving its Bitcoin to unknown wallets, possibly indicating a future sale.
Since Tesla’s Bitcoin purchase, here’s how it performed:
- Investing $1,000 in Bitcoin: After a slump in 2022 due to various economic issues, Bitcoin reached new heights in 2024 after Bitcoin ETFs gained approval.
After Tesla’s purchase on February 8, 2021, Bitcoin surged to $46,203.93 from $39,621.84. An investment of $1,000 at the peak could now be worth $1,468.65, up 46.9%.
If the same $1,000 was invested in Tesla stock, it would be worth $758.39, down 24.2%.
Bitcoin outperformed Tesla stock but lagged behind the SPDR S&P 500 ETF Trust SPY, which would be worth $1,491.58 now, up 49.2%.
While Bitcoin profits have surpassed many stocks over time, the day of Tesla’s purchase was not among them.
Michael Saylor from MicroStrategy advised Tesla’s Elon Musk to invest in Bitcoin in December 2020, which could have resulted in better returns for the company.
Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.
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This article was originally published by Benzinga and has been updated.
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