Elon Musk’s Tesla has profited $1 billion from holding Bitcoin

Tesla boldly enters Bitcoin (Bitcoin) The market has seen results in 2021, because the price of BTC has been rising in October More than 58,000 USD October 14.

According to online monitoring resources, Tesla currently holds about 43,200 BTC, which is worth about 2.5 billion US dollars at today’s price Bitcoin Treasury BondThis is about 65% higher than the automaker’s fee paid by Elon Musk’s company in February, or $1 billion. disclose It has added $1.5 billion in BTC to its balance sheet.

BTC/USD daily price chart. Source: TradingView

In the second quarter, Tesla sold 10% of its bitcoin holdings (approximately 46,000 BTC) at an average price of approximately $50,000 per token.In its Q2 Earnings Report, The company notified that it received $128 million worth of proceeds from the Bitcoin sale.

Tesla made its first billion-dollar profit in the second quarter by selling cars

After the recent Bitcoin price rebound, Tesla made as much net profit from its crypto assets as it did in the second quarter.

Specifically, Tesla reported a net profit of US$1.14 billion in the second quarter, which was the first time that Tesla exceeded the US$1 billion mark. This revenue is part of Tesla’s US$11.96 billion revenue, mainly through the sale of cars-approximately US$10.21 billion. The remaining USD 354 million comes from the sale of regulated credit.

Tesla revealed on October 1 that it had delivered 241,300 electric vehicles in the third quarter, compared with 201,250 in the previous quarter. Combined with Tesla’s Bitcoin profits, people have high expectations for the blockbuster earnings scheduled to be released after the close of the market on October 19.

“We think the third quarter will be the strongest quarter in TSLA’s history,” Said Piper Sandler analyst Alexander Porter.

Will other companies follow up?

So far, Tesla’s Bitcoin strategy has been very successful, providing a case study of how other companies have replaced Bitcoin Part of their cash reserves With BTC.

In other words, several companies that invested in Bitcoin before Tesla have achieved greater returns.

For example, the business intelligence company MicroStrategy Purchased approximately $3.15 billion worth of Bitcoin In multiple rounds of purchases. The first purchase dates back to August 11, 2020, and the company’s Bitcoin net profit is now close to $6.3 billion, almost twice its investment.

Jack Dorsey’s payment services company Square also See the considerable benefits of holding Bitcoin, Its $220 million investment is now worth more than $442 million.

In addition, the $39.3 million bitcoin purchase value of Hut 8 Mining Corp, a Canadian-based cryptocurrency mining company, increased by more than 600% to approximately $250 million.As early as June, the company Also revealed the plan Hold 5,000 BTC by 2022.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.