2021-2-23 17:15 |
The electric car company has doubled its Bitcoin investments in less than two months.
The leading digital currency made another all-time high at about $58,360 on Sunday, appreciating more than 14x in value since the March 2020 low. These gains helped Bitcoin become a trillion-dollar asset.
This week, however, the market is experiencing a sell-off after a 71.5% uptrend this year.
Bitcoin’s rally, before this recent pullback that went into action over the weekend, has racked up Tesla’s profits worth $1 billion, according to estimates by Dan Ives, an equity analyst at Wedbush Securities. Ives wrote in a note published Saturday,
“Based on our calculations, we estimate that Tesla so far has made roughly $1 billion of profit over the last month from its Bitcoin investment given the skyrocketing price of Bitcoin, which now tops a trillion of market value.”
At the time of the announcement in January, when the BTC price was between $30k to $40k, the company didn't specify when or at what price it bought Bitcoin. But Tesla is ready to make more from its BTC investment than by selling the cars throughout the last year.
The company “is on a trajectory to make more from its Bitcoin investments than profits from selling its EV cars in all of 2020,” he added.
Tesla, whose CEO is Elon Musk, who repeatedly tweets about Bitcoin and cryptos, also announced at the time of Bitcoin investment that it would soon begin to accept the cryptocurrency as payment for its products.
As the Crypto Twitter (CT) has been calling and hoping, the analyst also expects other companies to follow in Tesla’s footsteps. Ives said in the note,
“While the Bitcoin investment is a sideshow for Tesla, it's clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months.”
However, per him, less than 5% of public companies will take the same route at least until more regulatory clarity comes around.
Bitcoin/USD BTCUSD 51,669.5809 -$4,676.10 -9.05% Volume 91.02 b Change -$4,676.10 Open$51,669.5809 Circulating 18.64 m Market Cap 962.92 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=BTC&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD"); The post Tesla has Already Made Billion on its .5 Billion Bitcoin Investment first appeared on BitcoinExchangeGuide.Similar to Notcoin - Blum - Airdrops In 2024
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