According to Daniel Ives, an analyst at Wedbush Securities. Tesla made a $1 billion profit from its $1.5 billion Bitcoin purchase in January.
Ives also calculated that the company may have made more profits from its investments in Bitcoin. Then its entire profits from the sales of its electric cars in 2020.
Ives is confident that Tesla’s investment will encourage other publicly traded companies to do the same. “While investing in Bitcoin is a sideline for Tesla, it was clearly a winning choice – this decision could, over the next 12-18 months, trigger a ripple effect for many publicly listed companies,” he said.
However, Ives is concerned that regulatory uncertainties could prevent some companies from taking the plunge. “We expect less than 5% of public companies to follow this path, at least until the regulatory framework for the crypto market is clarified, which is starting to gain more widespread adoption in 2021,” he said.
While Tesla disclosed its Bitcoin purchase in a document filed with the U.S. Securities and Exchange Commission (SEC), it is unknown what price the company bought it at.
In January, the price of Bitcoin fluctuated between $29,000 and $37,000. Therefore, Tesla could have bought anywhere from 40,000 to 51,000 BTC with the $1.5 billion it spent.
Bitcoin has been on an upward trajectory since the start of the year. With the leading cryptocurrency’s market now valued at over $1 trillion for the first time.
A big reason for that was Tesla’s investment, which helped spark the current bull run. Bitcoin soared 16% to a record high of $44,795.20 after the announcement. Shares of the electric giant vehicle jumped as much as 2% as well.
Tesla CEO Elon Musk is one of the most prominent figures in the cryptocurrency world. In late January, he changed his Twitter to the word “#Bitcoin,” and it surged 15% as a result.
Musk also frequently tweets about Dogecoin, helping the meme cryptocurrency see gains as well. He mentioned it earlier this month and it skyrocketed 59% from the previous day.
Vanar Chain's ecosystem expansion efforts seem to have paid off, but the VANRY price still…
Ethereum Blockchain Heist - Two Brothers Charged NAIROBI (Coinchapter.com) - The Department of Justice has…
Chinese Police Bust Underground USDT Stablecoin Users Chinese police in Sichuan province have busted an…
Andrew Tate Announces Bitcoin Investment Andrew Tate, the former kickboxer and controversial online personality, ignited…
BlockTower Capital Attacked by Hackers NAIROBI (Coinchapter.com) - BlockTower Capital, a prominent crypto investment firm…
The world of online slot games is a fascinating blend of art, technology, and psychology.…