Invested $1,000 in Bitcoin when Tesla did? Here’s your return

BitcoinBTC/USD reached new highs in March 2024, potentially rising further before the 2024 presidential election.

Let’s revisit Tesla IncTSLA and its Bitcoin investment, highlighting gains for investors who followed their lead.

Tesla’s Move: While MicroStrategy was first to buy Bitcoin for its balance sheet in 2020, Tesla announced its own purchase of $1.5 billion worth of Bitcoin on February 8, 2021.

This news boosted Bitcoin’s price, viewed as a pivotal moment for cryptocurrency.

In Q1 2021, Tesla sold $272 million of its Bitcoin, positively impacting profits with $128 million in revenue.

By mid-2022, Tesla announced selling 75% of its Bitcoin, generating $936 million in cash.

As of recent quarters, Tesla holds $184 million in “digital assets,” which likely includes Bitcoin and DogecoinDOGE/USD.

Tesla stated it might adjust its digital asset holdings based on market conditions.

Recent reports suggest Tesla is moving its Bitcoin to different wallets, hinting at a potential sale.

Bitcoin’s Performance: After Tesla’s purchase, Bitcoin fell in 2022 due to various economic challenges, including the FTX bankruptcy.

However, by March 2024, Bitcoin reached $73,750.07, following strong demand for Bitcoin ETFs.

Bitcoin’s price surged to $46,203.93 on February 8, 2021, shortly after Tesla’s announcement. A $1,000 investment then could have bought 0.0216 BTC, worth $1,468.65 today—a gain of 46.9%.

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

Though Bitcoin has outperformed Tesla stock, it hasn’t surpassed the SPDR S&P 500 ETF TrustSPY, which would be worth $1,491.58 today—up 49.2%.

Bitcoin has performed well over various timeframes, but not on the day of Tesla’s purchase disclosure.

Advice from Saylor: Michael Saylor, co-founder of MicroStrategy, urged Elon Musk to invest in Bitcoin back in December 2020. If he had, Tesla could have seen even greater returns.

Read Next:

• If You Invested $1,000 In Bitcoin When Warren Buffett Called It ‘Rat Poison Squared,’ Here’s How Much You’d Have Today

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