Bitcoin BTC/USD reached new highs in March 2024 and might continue rising ahead of the 2024 presidential election.
This recap discusses Tesla Inc TSLA and its impact on investors after its Bitcoin purchase.
What Happened: Tesla purchased $1.5 billion in Bitcoin in January 2021, formally disclosed in February. This move boosted Bitcoin’s price, acting as a catalyst for the cryptocurrency market.
Tesla later sold $272 million worth of Bitcoin in Q1, positively affecting its profits. In 2022, it sold 75% of its Bitcoin holdings for $936 million cash.
Now, Tesla shows $184 million in “digital assets,” which may include Bitcoin and Dogecoin DOGE/USD.
Tesla may adjust its Bitcoin holdings anytime, depending on business needs. Recently, the company moved its Bitcoin to unknown wallets, possibly hinting at a sale.
Investing $1,000 in Bitcoin: In 2022, Bitcoin’s value dropped due to macroeconomic issues and events like the FTX bankruptcy. However, by March 2024, Bitcoin hit new highs due to increased demand after Bitcoin ETF approvals.
Bitcoin peaked at $46,203.93 on February 8, 2021, after Tesla’s purchase, up from $39,621.84 the day before. A $1,000 investment at that time could have bought 0.0216 BTC, worth $1,468.65 today (up 46.9%).
In contrast, a $1,000 investment in Tesla stock would now be worth $758.39 (down 24.2%). However, Bitcoin underperformed compared to the SPDR S&P 500 ETF Trust SPY, which would have yielded $1,491.58 (up 49.2%).
Investors in Bitcoin have generally outperformed top stocks and indexes, although not since Tesla’s purchase announcement.
Michael Saylor from MicroStrategy suggested that Elon Musk invest in Bitcoin in December 2020, which could have led to even greater returns for Tesla.
As of March 14, 2024, Bitcoin hit a record high of $73,750.07.
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This article was previously published by Benzinga and has been updated.
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