Tesla made a profit of about $ 1 billion from its investment in bitcoin, according to Daniel Ives, an analyst at Wedbush Securities, quoted by CNBC.
The company is about to make a bigger profit from its investments in bitcoin than from the sale of cars throughout 2020, Ives estimated in a note published on Saturday.
Earlier this month, the electric vehicle maker announced it had bought $ 1.5 billion worth of bitcoin to maximize cash returns. The purchase was made in January, the company said, without disclosing when or at what price it bought bitcoin. It is unclear whether Tesla sold bitcoin, according to Mediafax.
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Bitcoin has seen huge growth this year, regularly reaching record highs. The market value of Bitcoin exceeded $ 1 trillion for the first time last week, and the cryptocurrency has grown by 94% since the beginning of the year.
Ives did not explain how he reached that value. According to CoinDesk data, the bitcoin price went from an intraday high of $ 34,793.45 on January 31 to an intraday high of $ 57,487.03 on February 20, the day Ives released its note.
This represents an increase of about 65%, which would bring the profit of Tesla’s bitcoin investment of $ 1.5 billion to about $ 975 million. Based on the maximum level of $ 58,332.36 on Monday, that profit would exceed $ 1 billion.
Tesla CEO Elon Musk is a supporter of digital currencies. He recently said that Bitcoin is “a less stupid form of liquidity than cash.”
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