Bitcoin BTC/USD reached record highs in March 2024, possibly influenced by the upcoming 2024 presidential election.
Let’s revisit Tesla Inc TSLA‘s Bitcoin purchase and how it affected investors.
What Happened: MicroStrategy led Bitcoin investments, while Tesla announced a $1.5 billion Bitcoin buy on February 8, 2021, pushing Bitcoin prices higher.
Tesla sold $272 million of its Bitcoin in early 2021, boosting its profits by $128 million.
In 2022, Tesla sold 75% of its Bitcoin, generating $936 million.
Currently, Tesla reports $184 million in “digital assets,” which could include Bitcoin and Dogecoin DOGE/USD, used for Tesla purchases.
Tesla has indicated it may adjust its digital asset holdings based on market conditions.
Recent reports suggest Tesla might move its Bitcoin, possibly hinting at a sale.
Investing $1,000 in Bitcoin: The cryptocurrency dropped in 2022 due to various issues but hit new highs in 2024 after Bitcoin ETFs gained approval.
On February 8, 2021, Bitcoin rose to $46,203.93, up from a previous day high of $39,621.84. A $1,000 investment then would be worth about $1,468.65 today, a gain of 46.9%.
In contrast, a $1,000 investment in Tesla stock would have decreased to $758.39, a loss of 24.2%.
However, Bitcoin hasn’t outperformed the S&P 500 ETF Trust SPY, which would be worth $1,491.58 today, a 49.2% gain.
Overall, Bitcoin has outperformed many stocks over time, but not since Tesla’s purchase.
MicroStrategy’s Michael Saylor urged Elon Musk to invest in Bitcoin earlier, which could have yielded better returns.
Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.
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This article was originally published by Benzinga and has been updated.
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