Invested $1,000 in Bitcoin? See its value today

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

0

2

Bitcoin (BTC/USD) reached new highs in March 2024, potentially rising further before the 2024 presidential election.

This recap highlights Tesla Inc. (TSLA) and its Bitcoin investment, showing how much investors could have gained by following the company’s lead.

Overview: Tesla purchased $1.5 billion of Bitcoin in January 2021, announced on February 8, 2021. This purchase helped boost Bitcoin’s price and was viewed as a major cryptocurrency milestone.

In Q1 2021, Tesla sold $272 million worth of Bitcoin, contributing positively to its quarterly profits.

In mid-2022, Tesla sold 75% of its Bitcoin, bringing in $936 million.

Recently, Tesla reported $184 million in “digital assets” on its balance sheet, which may include both Bitcoin and Dogecoin (DOGE/USD).

Tesla may adjust its digital asset holdings based on market conditions and business needs.

Recently, reports surfaced about Tesla moving its Bitcoin to unknown wallets, possibly indicating a future sale.

Bitcoin Performance: Bitcoin experienced a decline in 2022 due to economic issues and events like the FTX bankruptcy.

However, by March 2024, Bitcoin hit $73,750.07, following the approval of Bitcoin ETFs which increased demand.

On February 8, 2021, Bitcoin surged to $46,203.93 post-Tesla’s announcement, up from $39,621.84 the previous day. A $1,000 investment at that high could now be worth $1,468.65, a 46.9% increase.

In contrast, a $1,000 investment in Tesla stock would now be worth $758.39, a 24.2% decrease.

Although Bitcoin has outperformed Tesla stock since its purchase, it has not outperformed the SPDR S&P 500 ETF Trust (SPY), which would now be worth $1,491.58, a 49.2% increase.

Thus, investors in the S&P 500 have fared better than those in Bitcoin on the day of Tesla’s purchase announcement.

Advice from Michael Saylor: MicroStrategy co-founder Michael Saylor suggested to Tesla’s Elon Musk to invest in Bitcoin back in December 2020, which could have resulted in even greater returns.

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

Read Next: