An analyst at Wedbush Securities estimated that Tesla made paper profits of approximately $1 billion from its investment in Bitcoin.
Tesla has made around $1 billion in paper profits from its investment in Bitcoin, according to Daniel Ives, an analyst at Wedbush Securities. “As reported by CNBC, Ives estimated in a note released on Saturday that the electric car company is “on a trajectory to make more from its Bitcoin investments than profits from the sale of its EV (electric vehicle) cars throughout 2020,
$1.5 billion was invested in bitcoin by Tesla.
Earlier this month, in a Securities and Exchange Commission filing, the U.S. electric carmaker disclosed that it had bought $1.5 billion worth of bitcoin for “more flexibility to further diversify and maximize returns on our cash.” The purchase of bitcoin was made in January, the company said without disclosing when or at what price it bought bitcoin for. It’s unclear if any of the bitcoin has yet been sold by the business. Bitcoin, the leading cryptocurrency, has seen a huge rally this year, regularly touching fresh record highs. For the first time last week, the market value of Bitcoin topped $1 trillion and the cryptocurrency is up almost 94 percent year-to-date.
Elon Musk defends the move by Tesla into Bitcoin.
Elon Musk defended the action by Tesla to invest in bitcoin, saying that the difference in cash made it “adventurous enough” for the cryptocurrency to be held by the S&P 500 company. He further believed that it was only a little better to own bitcoin than to hold conventional cash, but that the slight difference made it a better holding asset. However, only a fool wouldn’t look elsewhere if the fiat currency has a negative real interest.
“Bitcoin is almost as bs as fiat money. The keyword is almost,”Musk tweeted.