Tesla has earned a billion dollars on its bitcoin purchase
Earlier this month, it was revealed that Tesla has made major investments in the cryptocurrency bitcoin. They are said to have bought bitcoin for $ 1.5 billion in January.
According to Daniel Ives, an analyst at Wedbush Securities, to which the news channel CNBC refers, Tesla has already made about a billion in profit on this investment after a rally in the currency at the beginning of the year.
Bitcoin has seen a massive rally this year, reaching record highs regularly. Bitcoin’s market value topped $1 trillion for the first time last week, and the cryptocurrency is up 94% year-to-date.
While the Bitcoin investment is a side show 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, Ives said.
Tesla earns more on crypto than selling cars (for now)
Ives believes that Tesla will earn more from this investment than they did from selling electric cars throughout 2020. However, it is not known exactly when or at what price Tesla made this investment, nor if they sold anything in the holding.
Tesla founder Elon Musk is a proponent of digital currencies, and recently stated that they “are simply a less stupid form of liquidity than cash”, but this weekend he also tweeted that the price of bitcoin “feels high”, writes CNBC.
Get the start of this story here.