Bitcoin BTC/USD reached new highs in March 2024, potentially rising further before the 2024 presidential election.
Here’s a recap of Tesla Inc’s TSLA investment in Bitcoin and the profits investors might have realized.
Overview: While MicroStrategy led in Bitcoin investments starting in 2020, Tesla made a notable purchase of $1.5 billion in Bitcoin in January 2021, announced in February 2021.
After the announcement on Feb. 8, 2021, Bitcoin’s price jumped to $46,203.93, up from $39,621.84 the previous day.
Tesla later reported selling $272 million of Bitcoin in Q1 2021, boosting profits, and in Q2 2022, it sold 75% of its holdings for $936 million.
Currently, Tesla shows $184 million in “digital assets,” likely including Bitcoin and Dogecoin DOGE/USD, which can be used for purchases on their site. Tesla has stated it may adjust its digital asset holdings as needed.
Recently, Tesla reportedly moved its Bitcoin to other wallets, hinting at a possible sale.
Performance Comparison: A $1,000 investment in Bitcoin on Feb. 8, 2021, would now be worth $1,468.65, a 46.9% gain. In contrast, the same investment in Tesla stock would only be worth $758.39, down 24.2%.
However, a $1,000 investment in the SPDR S&P 500 ETF SPY would now be worth $1,491.58, up 49.2%, indicating better returns in the S&P 500 compared to both Bitcoin and Tesla stock.
Though Bitcoin has outperformed many stocks and indices over time, the day of Tesla’s Bitcoin purchase isn’t one of those instances.
Michael Saylor from MicroStrategy had suggested Musk invest Tesla’s cash in Bitcoin back in December 2020, which could have led to even greater returns.
Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.
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This article was previously published by Benzinga and has been updated.
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