Tesla has now raised over $1 billion on its Bitcoin investment as the price of the cryptocurrency nears $58,000, for the first time since May. The electric car producer originally invested $1.5 billion in Bitcoin, and its investment is now worth about $2.5 billion.
According to Bitcoin Magazine's assumptions, Tesla owns 43,200 BTC, which is nearly $2.5 billion at the time of this writing. On February 8, the manufacturer announced that it had updated its investment policy to give itself more flexibility to further diversify and increase the return on its cash, and had acquired $1.5 billion in Bitcoin cryptocurrency. Although the purchase price of the crypto coin was not disclosed, it is reported that the purchase was made in January.
Tesla sold 10% of its Bitcoin in Q2 at an average price of about $50,000 per token. CEO Elon Musk later tweeted that Tesla sold 10% of its Bitcoin assets to prove the asset's liquidity and viability as an alternative to cash on its balance sheet. In June, he also wrote that Tesla owns less than 42,069 Bitcoins, although that that number is close. In its Q2 earnings report, Tesla announced that it made a $128 million profit from the sale of Bitcoin.
So it is estimated that, since the initial investment in Bitcoin, the carmaker has gained roughly 65%, which equates to roughly $1 billion. In comparison, this is the same as its revenue from the sale of approximately 201,000 vehicles in Q2.
© 2021, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
