Bitcoin BTC/USD reached new heights in March 2024 and may keep climbing ahead of the 2024 presidential election.
This recap highlights Tesla Inc’s TSLA investment in Bitcoin and potential profits for investors.
Background: While MicroStrategy was first to add Bitcoin to its balance sheet, Tesla made a significant purchase of $1.5 billion in January 2021, announced on February 8, 2021. This news increased Bitcoin’s value.
Tesla later sold $272 million of its Bitcoin, positively impacting its quarterly profit with $128 million from these sales.
In 2022, Tesla sold 75% of its Bitcoin for $936 million, showing a mix of Bitcoin and Dogecoin DOGE/USD as “digital assets” worth $184 million on its balance sheet.
Tesla can adjust its cryptocurrency holdings based on business needs and market outlook, hinting at possible upcoming moves with its Bitcoin.
Bitcoin has surged after Tesla’s investment. Here’s how it has performed:
- Investing $1,000 in Bitcoin: After its decline in 2022, Bitcoin rebounded significantly in 2024 following ETF approvals, reaching $46,203.93 on the day of Tesla’s announcement.
An investment of $1,000 in Bitcoin at that peak would now be worth $1,468.65, while the same amount in Tesla stock would be $758.39, a decrease of 24.2%. However, both investments lagged behind the SPDR S&P 500 ETF Trust SPY, which would now be worth $1,491.58, up 49.2%.
Despite Bitcoin’s strong performance overall, it didn’t outpace Tesla or the S&P 500 on the day Tesla disclosed its purchase. If Elon Musk had invested in Bitcoin earlier, Tesla could have enjoyed even higher returns.
Bitcoin peaked at $73,750.07 on March 14, 2024.
Read Next:
This article was updated by Benzinga.
Market News and Data provided by Benzinga APIs
© 2024 Benzinga.com. No investment advice provided. All rights reserved.
`
