According to a new report, American electric car giant Tesla has reportedly made a profit of up to $ 1 billion from its Bitcoin (BTC) investment.
An analyst at Wedbush Securities, a private investment firm in the United States, calculated that Tesla made "roughly $ 1 billion" after investing $ 1.5 billion in Bitcoin. Daniel Ives predicted Tesla's Bitcoin profit in an investor note on Saturday.
After the parabolic fluctuation of Bitcoin became a $ 1 trillion asset, Ives said, "Tesla is on its way to making more of its investments in Bitcoin than the profit it made by selling electric vehicle cars throughout 2020." said.
Ives stated that Tesla's move is likely to affect other public companies. “While the Bitcoin investment was a side show for Tesla, it was clearly a good initial investment and set a trend that we expect will have a ripple effect for other public companies in the next 12 to 18 months,” he wrote. However, Ives expects only a small fraction of the market to follow this trend due to issues of legal uncertainty.
Tesla officially announced a $ 1.5 billion investment in Bitcoin as part of its application to the US Securities and Exchange Commission on Feb. 8. As the company did not reveal this information at the time of filing, it remains unclear how much Bitcoin Tesla bought and at what price. .
While Bitcoin traded roughly between $ 29,000 and $ 37,000 in January, a $ 1.5 billion investment could mean Tesla purchases anywhere between 40,000 and 51,000 BTC.
In late January, Tesla reported its first full-year profit, noting that the company earned $ 721 million in 2020, after a loss of $ 862 million in 2019.