Analyst Reports That Tesla has Made About USD 1 Billion Profit On Bitcoin Investment

We all knew that Tesla invested about USD 1.5 Billion in Bitcoins and people were kind of shocked. Well, it seems the decision wasn’t that crazy after all. Analyst reports that Tesla has made about USD 1 Billion profit on Bitcoin already.

Analyst Reports USD 1 Billion Profit on Bitcoin Investment by Tesla

This news of Tesla making USD 1 Billion profit on Bitcoin comes from Daniel Ives, analyst at Wedbush securities. According to him, Tesla has made about USD 1 Billion profit on paper with its Bitcoin investment.

According to a note published on Saturday by Ives, The company is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV(electric vehicle) cars in all of 2020”.

Tesla Investment in Bitcoin Earlier This Month

Analyst Reports USD 1 Billion Profit on Bitcoin Investment by Tesla

The news of Tesla investing about USD 1.5 Billion in Bitcoin came out earlier this month. The US-based electric car maker disclosed this in a Securities and Exchange Commission filing. Tesla said that this investment will be helpful for “more flexibility to further diversify and maximize returns on our cash.”

Tesla made this purchase somewhere in January and it did not disclose when or at what price it bought bitcoin for. It is not yet clear whether Tesla sold some of its Bitcoin or not.

Bitcoin has seen some wild popularity lately as it is touching all the record-highs. Bitcoin’s market value was USD 1 Trillion for the first time last week. It is up 94% year-to-date.

Further Reading on Tesla and Its USD 1 Billion Profit on Bitcoin Investment

In the report, Ives did not mention how he got the figures. However, according to CoinDesk data, If you look at the price of Bitcoin from January 31 which was around USD 34,793.45 to Feb 20 which was around USD 57,487.03(the day Ives published his note). You can clearly see that it is a rise of about 65%.

So now take Tesla’s USB 1.5 Billion Bitcoin, take 65% of it and that makes it about USD 975 Million if my math isn’t wrong. Now, if you take Monday’s intraday high of Bitcoin, which was about USD 58,332.36, that will make the USD 1 Billion profit on Bitcoin investment.

“While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months,” Ives Said

We know that Elon Musk is a fan of cryptocurrencies as he also pushed Dogecoin on Twitter and Tesla making a huge profit on Bitcoin is just crazy given the very short period of time between the purchase and such huge profit.

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