Invested $1,000 in Bitcoin when Tesla bought? See your value

Bitcoin BTC/USD reached all-time highs in March 2024 and may continue to rise ahead of the 2024 presidential election.

Let’s review Tesla Inc’s TSLA Bitcoin purchases and their impact on investors.

Backstory: While MicroStrategy has held Bitcoin since 2020, Tesla bought $1.5 billion worth in January 2021, announced in February.

This purchase boosted Bitcoin’s price on the announcement date, seen as a major boost for cryptocurrency.

Tesla later sold $272 million of its Bitcoin in early 2021, positively affecting its quarterly profits.

In 2022, Tesla sold 75% of its Bitcoin, netting $936 million.

Recently, Tesla reported $184 million in “digital assets,” including Bitcoin and potentially Dogecoin DOGE/USD.

Tesla noted it could adjust its digital asset holdings based on market conditions.

A recent report suggested Tesla is moving its Bitcoin to unknown wallets, possibly hinting at future sales.

Here’s how Bitcoin has performed since Tesla’s investment:

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Investing $1,000 in Bitcoin: Bitcoin faced challenges in 2022 due to broader economic issues and the FTX bankruptcy.

However, by March 2024, Bitcoin hit new heights, partly due to Bitcoin ETFs attracting institutional investors.

Bitcoin’s price surged to $46,203.93 after Tesla’s announcement, rising from $39,621.84 the day before.

If you invested $1,000 on Feb. 8, 2021, you would have bought 0.0216 BTC, now worth $1,468.65 (up 46.9%).

In comparison, a $1,000 investment in Tesla stock would now be worth $758.39, a 24.2% decrease.

Though Bitcoin has outperformed Tesla stocks, it hasn’t done better than the SPDR S&P 500 ETF Trust SPY, which would be worth $1,491.58 today (up 49.2%).

Overall, Bitcoin has provided better returns than many stocks and indices, but not on the day Tesla’s purchase was disclosed.

Michael Saylor of MicroStrategy urged Elon Musk to invest in Bitcoin in December 2020; had he done so, Tesla’s returns could have been greater.

Bitcoin hit a record $73,750.07 on March 14, 2024.

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