Tesla could have made more in profits from its recent bitcoin investment than it has made selling EVs, Yahoo! Finance reported.
When bitcoin hit the $50,000 mark for the first time ever, this continued the 2021 rally that has been sending it higher on an increased adoption among enthusiasts.
Tesla purchased $1.5 billion in bitcoin last month, and even though it hasn’t revealed its average purchase price or how many bitcoins it holds, Tesla could be raking in the profits.
In January, Bitcoin traded between $29,333 and $37,202. Tesla’s big purchase could have ranged between 37,020 and 51,137 bitcoin, with an average coming out to be 44,079 bitcoin.
With these numbers in mind, the article noted that the value of Tesla’s bitcoin is worth the following with the bitcoin price of $48,450 at the time of the Yahoo! Finance article being written:
- 51,137 Bitcoin: $2.48 billion, profit of $0.98 billion.
- 44,079 Bitcoin: $2.14 billion, profit of $0.64 billion.
- 37,020 Bitcoin: $1.79 billion, profit of $0.29 billion.
The price is actually up considerably since then, sitting at $57,744.80 right now.
Using that estimate of 44,079 bitcoins, the total value would now be $2.545 billion, a profit of more than $1 billion.
Tesla’s financial gain on the bitcoin purchase could be more than Tesla has made from its entire business during the fiscal year of 2020, which was also the company’s first profitable year.
The article noted that Tesla’s purchase created validation of the cryptocurrency for some and has also been seen as a step forward for other publicly traded companies to make a similar move.
On the other hand, it’s also been criticized due to the very high amounts of electricity used in mining the coin.