Tesla’s $1.5B Bitcoin purchase is its most profitable move in 10 years

Tesla has made more money from investing in Bitcoin then it did from car sales over the last decade

Tesla's $1.5B Bitcoin purchase is its most profitable move in 10 years 1

Yahoo reports that Tesla made more profit from its $1.5 billion Bitcoin purchase than it did from its car sales for the last decade. In its quarterly review, Tesla detailed earning $721 million in fiscal 2020 which still doesn’t make up for its loss of $862 million in fiscal 2019.

Bitcoin has been around since the early 2000s, yet it was worth practically nothing at the time. In the last couple of years, the cryptocurrency has been steadily increasing value reaching up to more than $13,000 for one bitcoin in 2017. When 2021 hit, however, the value of bitcoin skyrocketed to more than $34,000 per bitcoin.

The value has been steadily increasing since then. Just this week, however, Bitcoin has reached an all-time high of $50,000 per bitcoin. This is in part due to the fact that Tesla, led by the forward-thinking Elon Musk, announced that it had purchased $1.5 billion in Bitcoin, effectively proving Bitcoin’s value to the market.

Tesla acquired its millions of Bitcoin sometime in January when it was valued at about $29,333 to $37,000. So even if the company exchanged their Bitcoins before the $50,000 high, the company still would have made more than it spent. If Tesla plans on holding its Bitcoins, it may yield even more given its current state of growing value in the market.

Source: Yahoo
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