Tesla's bitcoin investment reportedly made more profit this year than car sales in the whole of 2020
Tesladisclosed in a SEC filing on Feb 8 that it purchased $1.5 billion of bitcoin.
- If its holding has remained the same size, it will reportedly have made a $930 million profit.
- That's almost 30% more than the company made from car sales in 2020, The Times of London reported.
Tesla's $1.5 billion bitcoin investment didn't just make headlines, it has also made the company more profit than its car sales last year, according to a Times of London report.
On Friday, the
Bitcoin's historic rally has been a source of debate across the investing community, with many concerned that its 546% year-on-year gains (according to CoinDesk data) might have created a bubble and UBS flagging that the asset could be 'worthless'.
However, Tesla's CEO,
Tesla's original bitcoin investment was disclosed in its annual 10-k filing on February 8, showing that it bought $1.5 billion worth of bitcoin in January. The company also announced that it plans to begin accepting the cryptocurrency as a form of payment in the near future, according to a CNBC report.
Tesla shares rose 2% on the news, with bitcoin also hitting then record highs of $44,795.20.
Despite JPMorgan CEO Jamie Dimon calling it a "bit of a fraud" in 2017, as reported by CNBC, institutional investors are starting to take note of the cryptocurrency. Even JPMorgan is now touting a case for the price of bitcoin hitting $146,000, but a recent note published by the firm did suggest that Bitcoin was worth only $25,000 with such high levels of current volatility.
BNY Mellon, America's oldest bank, has also started to dabble in Bitcoin, the WSJ reported.
All eyes are now watching for the next institutional to invest in the cryptocurrency.
"If you are a company CEO and thinking about adding #Bitcoin to your balance sheet you still have the opportunity to be an early adopter. But not for long," tweeted Tyler Winklevoss, the billionaire and co-founder of crypto-exchange Gemini.
- Family stands to lose nearly $6,000 in airfare and hotel costs after they were bumped from an overbooked cruise ship
- A Trump spokeswoman mocked Pete Buttigieg's military service in a Memorial Day weekend spat with Ron DeSantis
- Flyers are 'skiplagging' to try and save money on flight tickets. Airlines hate it.
- With inflation cooling, RBI may slash interest rates by 50 bps this financial year
- ULIPs are not for senior citizens: Here’s how to choose the right investments to secure the golden years of your life
- Ambati Rayudu announces retirement from IPL
- Data protection bill to drive deep behavioural changes for platforms exploiting data: Chandrasekhar
- MS Dhoni set to play 250th IPL match of his career