Invested $1,000 in Bitcoin when Tesla bought? Here’s your total

Bitcoin BTC/USD reached record highs in March 2024, possibly rising further as the 2024 presidential election approaches.

Let’s review Tesla Inc TSLA‘s Bitcoin purchase and its impact on investors.

Background: MicroStrategy was the first major company to buy Bitcoin in 2020, but Tesla followed suit in January 2021, announcing it bought $1.5 billion in Bitcoin on Feb. 8, 2021. This contributed to a jump in Bitcoin’s price.

Tesla later reported selling $272 million of its Bitcoin in Q1, boosting its profitability. In 2022, it sold 75% of its Bitcoin for $936 million.

As of now, Tesla still holds $184 million in “digital assets,” possibly including both Bitcoin and Dogecoin DOGE/USD.

Tesla has hinted it may adjust its digital asset holdings based on its market outlook.

Recent reports suggest Tesla is moving its Bitcoin to unknown wallets, potentially indicating a future sale.

Bitcoin Investment Overview: Despite a decline in 2022 due to various market factors, Bitcoin hit new highs in 2024 following the approval of Bitcoin ETFs.

On Feb. 8, 2021, Bitcoin rose to $46,203.93 after Tesla’s announcement, compared to $39,621.84 the day before. A $1,000 investment at that peak would now be worth $1,468.65, reflecting a 46.9% gain.

In contrast, a $1,000 investment in Tesla stock would be worth $758.39 today, a decline of 24.2%.

Compared to the SPDR S&P 500 ETF Trust SPY, which would be worth $1,491.58 today (up 49.2%), Bitcoin has not outperformed this index since Tesla’s purchase announcement.

Though Bitcoin has performed well over time, it hasn’t surpassed the S&P 500 since the date of Tesla’s investment. If CEO Elon Musk had followed MicroStrategy co-founder Michael Saylor‘s advice in December 2020 to invest in Bitcoin earlier, Tesla could have achieved an even greater return.

Bitcoin peaked at $73,750.07 on March 14, 2024.

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This article was originally published by Benzinga and has been updated.