Bitcoin BTC/USD reached new highs in March 2024, possibly rising further before the 2024 presidential election.
This article reviews Tesla Inc TSLA and its Bitcoin investments, highlighting potential returns for investors.
Background: Tesla invested $1.5 billion in Bitcoin in January 2021, announced on February 8, 2021. This purchase positively influenced Bitcoin’s price.
Tesla sold $272 million in Bitcoin in Q1 2021, boosting its profits. By mid-2022, it sold 75% of its Bitcoin for $936 million.
As of recent reports, Tesla still has $184 million in “digital assets,” likely including Bitcoin and Dogecoin DOGE/USD, used for merchandise purchases.
Tesla indicated it might adjust its digital asset holdings based on business needs and market outlooks, with recent activity suggesting a potential sale.
Bitcoin Performance: Despite a decline in 2022, Bitcoin surged to new heights in 2024, aided by Bitcoin ETFs’ approval.
After Tesla’s announcement, Bitcoin jumped to $46,203.93 on February 8, 2021. A $1,000 investment then would be worth $1,468.65 today, a 46.9% increase.
Investing in Tesla stock instead would have resulted in $758.39, a 24.2% loss during the same period. However, Bitcoin still lagged behind the SPDR S&P 500 ETF Trust SPY, which would be worth $1,491.58 today, a 49.2% gain.
Despite Bitcoin outperforming many stocks in the long run, its performance since Tesla’s disclosure hasn’t been as strong as the S&P 500.
Had Tesla invested as suggested by MicroStrategy’s Michael Saylor in December 2020, it might have seen even higher returns.
Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.
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This article was updated and originally published by Benzinga.
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