Tesla’s recent investment in Bitcoin (BTC) has reportedly made them a billion dollars worth of profit. Daniel Ives, an analyst in the US, stated that by calculations and analysis, the electric car company have made a profit of up to $1 billion after they invested $1.billion dollars into Bitcoin late last year. It was only revealed this year that the company had invested in the digital asset.
Amidst all this, Bitcoin has become an asset worth over $1 trillion. The analyst stated that Tesla is on its way to garner more gains off the digital asset than it did in the sales of its cars in 2020.
Other firms like Tesla to Dip into Bitcoin Investment soon
Ives predicted that other public companies will be following in the footsteps of Tesla in the not-so-distant future. He stated that even though investment in BTC was just something more of a side business, it has paid off even more than earlier expected. We could see a ripple effect very soon as other public companies would be looking to invest in BTC over the next few months. This will go on until the noose around Bitcoin investment is tightened as the digital asset has created a buzz around the financial market. Lawmakers feel that it has become necessary for the market to be regulated.
The $1.5 billion investment is, however, speculation as Tesla could have invested even more into Bitcoin. The car company officially made its Bitcoin investment public on February 8. This was announced in a SEC filing in which their investments and profits had to be declared. The amount used for the investment, however, was not made available to the general public.
Tesla announced that they made a whopping $721 million profit at the back of a massive $862 million loss back in 2019. This uphill turn in of their profits can be partly attributed to their investment in Bitcoin.