Invested $1,000 in Bitcoin when Tesla did? See your return

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

A look back at Tesla Inc (TSLA) and its Bitcoin purchase shows how much investors could have gained by following them.

What Happened: While MicroStrategy has held Bitcoin since 2020, Tesla bought $1.5 billion in Bitcoin in January 2021, announced on February 8, 2021. This purchase significantly boosted Bitcoin’s price.

Tesla later sold $272 million of Bitcoin in early 2021, positively impacting its profits with $128 million in proceeds.

In 2022, Tesla sold 75% of its Bitcoin, generating $936 million in cash. Their balance sheet recently showed $184 million in “digital assets,” likely including Bitcoin and Dogecoin (DOGE/USD).

Tesla has indicated it might adjust its digital assets based on market conditions. Recently, there were reports of Tesla moving Bitcoin to undisclosed wallets, hinting at potential sales.

Since Tesla’s purchase, Bitcoin has experienced notable performance.

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Investing $1,000 in Bitcoin: Bitcoin faced declines in 2022 due to macroeconomic challenges and the FTX bankruptcy.

By 2024, Bitcoin reached new highs after Bitcoin ETFs were approved, attracting more institutional investment. It hit $46,203.93 on February 8, 2021, up from $39,621.84 the day before.

A $1,000 investment in Bitcoin at its peak in February 2021 could have bought 0.0216 BTC, worth $1,468.65 today, a 46.9% increase.

In contrast, a $1,000 investment in Tesla stock would now be worth $758.39, down 24.2% over the same period.

While Bitcoin outperformed Tesla stock since its purchase announcement, it has not outdone the SPDR S&P 500 ETF Trust (SPY), which would be worth $1,491.58 today, up 49.2%.

Investors in Bitcoin have generally outperformed top stocks and indices over many periods, except on the day of Tesla’s purchase announcement.

In December 2020, Michael Saylor of MicroStrategy urged Elon Musk to invest in Bitcoin. If Musk had, Tesla might have achieved even greater returns.

Bitcoin hit 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.