Invested $1,000 in Bitcoin when Tesla did? See today’s worth

Bitcoin BTC/USD reached record highs in March 2024 and may rise further before the 2024 presidential election.

This article reviews Tesla Inc’s TSLA Bitcoin investment and what it means for investors.

Recent Developments: While MicroStrategy was the first to add Bitcoin to its balance sheet in 2020, Tesla made its move in January 2021, announcing a purchase of $1.5 billion on February 8, 2021. This purchase greatly impacted Bitcoin’s price that day.

Tesla later sold $272 million of its Bitcoin in Q1, which positively influenced its quarterly profits, generating $128 million.

In 2022, Tesla sold 75% of its Bitcoin, contributing $936 million to its cash balance.

Currently, Tesla has $184 million in “digital assets,” potentially including both Bitcoin and Dogecoin DOGE/USD, which can be used in its online store. The company has indicated it may adjust its digital asset holdings based on market conditions.

Recent reports suggest Tesla has been moving its Bitcoin to unknown wallets, which might indicate a future sale.

Bitcoin’s Performance Since Tesla’s Purchase:

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Investing $1,000 in Bitcoin: Bitcoin faced challenges in 2022, but by March 2024, it hit new highs, driven by Bitcoin ETFs and rising institutional interest.

On February 8, 2021, Bitcoin surged to $46,203.93 after Tesla’s announcement, a jump from the previous day’s $39,621.84.

A $1,000 investment in Bitcoin at that peak could have bought 0.0216 BTC, valued at $1,468.65 today, which is a 46.9% increase. In contrast, $1,000 invested in Tesla stock would be worth $758.39, down 24.2% during the same period.

While Bitcoin has performed better than Tesla stock since the purchase announcement, it hasn’t outperformed the SPDR S&P 500 ETF Trust SPY, which would be worth $1,491.58 today, a 49.2% increase.

Investors in Bitcoin have outdone many stocks and indices over various timeframes, but not on the day Tesla disclosed its purchase.

Michael Saylor, co-founder of MicroStrategy, had advised Elon Musk to invest in Bitcoin back in December 2020. If he had, Tesla would have seen even greater investment returns.

Bitcoin reached an all-time high of $73,750.07 on March 14, 2024.

Read Next:

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