Tesla Is Estimated To Have Earned $1 Billion Revenue On Bitcoin Investment

Tesla Is Estimated To Have Earned $1 Billion Revenue On Bitcoin Investment

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  • Tesla has approximately made $1 billion in profits from its investment into bitcoin, estimated by Daniel Ives, an analyst at Wedbush Securities.
  • The company is on the course of making more from its Bitcoin investments than revenues from selling its EV (electric vehicle) cars in all of 2020, according to Ives in a note published on Saturday.
  • This month, Tesla revealed in a Securities and Exchange Commission filing that it had acquired $1.5 billion value of bitcoin.

Tesla has approximately made $1 billion in profits from its investment into bitcoin, estimated by Daniel Ives, an analyst at Wedbush Securities.

The company is on the course of making more from its Bitcoin investments than revenues from selling its EV (electric vehicle) cars in all of 2020, according to Ives in a note published on Saturday.

Earlier this month, the U.S. electric carmaker revealed in a Securities and Exchange Commission filing that it had acquired $1.5 billion value of bitcoin for more flexibility to further expand and maximize returns on cash.

Photo by: STRF/STAR MAX/IPx 2021 2/8/21 Tesla buys $1.5 Billion in bitcoin, plans to accept it as payment. STAR MAX Photo: Tesla logo photographed off an iPhone 6s.

The acquisition was made sometime in January, the company said without revealing when or at what price it purchased bitcoin for. It is unknown whether Tessa has traded any of the bitcoin yet.

Bitcoin has witnessed a massive rally this year, frequently touching fresh record highs. Bitcoin’s market value topped $1 trillion for the first time last week, and the cryptocurrency is up 94% year-to-date.

Ives did not elaborate on how he concluded that calculation. But according to CoinDesk data, bitcoin’s price has gone from an intraday high of $34,793.45 on Jan. 31 to an intraday high of $57,487.03 on Feb. 20, the day Ives had his note published.

That’s a surge of about 65%, which would put the value on Tesla’s $1.5 billion bitcoin investment at almost $975 million. Based on Monday’s intraday high of $58,332.36, that profit would be more than $1 billion.

As the Bitcoin investment is a sideshow for Tesla, it’s imminent that it is a good initial investment and a trend that is expected to have a ripple impact for other public companies over the next 12 to 18 months.

Tesla CEO Elon Musk is an advocate of digital currencies. Recently, he opined that bitcoin is simply a less dumb form of liquidity compared to cash.

However, he also tweeted on Saturday that the price of bitcoin and another digital currency ethereum do appear high.

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