Tesla may have made more money holding Bitcoin than selling cars

It has been 37 days since Tesla announced the purchase of Bitcoin (BTC) for $1.5 billion in a filing with the U.S. Securities and Exchange Commission.

The exact amount of BTC purchased was not specified in the document, but with bitcoin trading between $29,000 and $37,000 in January, Tesla’s $1.5 billion release could mean the company owns at least 40,000 BTC.

Based on these speculative figures and the rise in bitcoin prices since late January, Tesla’s minimum of 40,000 BTC is now worth $2.2 billion. This amount represents $700 million in unrealized gains.

Tesla, for example, made nearly $19 million in unrealized gains per day in the 37 days following the bitcoin announcement.

The electric car maker generated $31.54 billion in revenue from the sale of 499,550 vehicles in 2020 and posted a profit of $721 million. Tesla’s ownership of bitcoins nearly dwarfs this profit margin, especially considering the above analysis only takes into account the presumed minimum bitcoins the company owns.

Based on average car sales throughout the year, Tesla sold about 1,368 cars per day with a daily profit of $1.98 million.

As previously reported, Tesla made $19 million per day in unrealized profits by holding bitcoin. To achieve this performance in practice, the company would need to increase its daily car sales by more than 860%, with all other factors unchanged from 2020.

Some believe Bitcoin has a one-year bull market, and others predict a six-figure price for BTC, but Tesla’s unrealized gains from owning the assets could outpace car production by orders of magnitude.

The largest cryptocurrency by market capitalization has risen nearly 90 percent in the past year, increasing more than tenfold.

Related Tags:

bitcoin price,tesla bitcoin profit,tesla bitcoin price,tesla bitcoin purchase,tesla stock,is bitcoin safe,Privacy settings,How Search works,how much are bitcoins worth,bitcoin news today

Latest News

Is Smooth Love Potion (SLP) a Good Investment?

Smooth Love Potion is a cryptocurrency that has been around for a while now. It was originally created as a joke, but it caught...

Kraken Fees: Breakdown for Crypto Trading and Purchasing

Fees are a major issue for traders and consumers of cryptocurrency, even though the industry is still in its infancy. Kraken’s fees have been...

Fantom Into NFT World — NFT’s on FTM a Game-Changer?

The Fantom Foundation is a blockchain-powered ecosystem that allows users to create, buy, and trade NFTs. This article will explore the potential of this...

Decred Price Prediction (DCR) for 2021, 2022, & 2025

Decred is a digital currency that can be used to pay for goods and services. The coin was created in 2016 by the team...

Related articles