Much has been done about the sheer sum that Tesla Inc. has invested in bitcoin, a speculative asset that has only existed since 2009.
Read: Why did Tesla buy Bitcoin?
However, early estimates by leading technology analyst Dan Ives see the electric vehicle maker’s investment, led by French CEO Elon Musk, already minting a digital paper profit of at least $ 1 billion, as the price of the asset rises in the records. .
“Based on our calculations, we estimate that Tesla has so far made nearly $ 1 billion in profits over the past month … To put this in perspective, Tesla is on a trajectory to get more of its Bitcoin Investments That Profits From The Sale Of [electric vehicle] cars throughout 2020, ”Wedbush analyst Dan Ives wrote in a note published on Saturday afternoon.
Earlier this month, Tesla Inc. TSLA,
became the last best-known and most well-known corporation to participate in bitcoin, highlighting the growing acceptability of cryptography. The company, based in Palo Alto, California, on Feb. 8, stated in a public filing that it bought $ 1.5 billion worth of BTCUSD bitcoins,
and that it hopes to begin accepting payment in cryptocurrency for its products in the future.
Tesla’s move to invest in bitcoin was seen as further confirmation of the legitimacy of the nascent asset that didn’t exist until about 12 years ago.
On Friday, the price of Bitcoin rose to a record $ 54,000 and breached a total market valuation of $ 1 trillion, further reinforcing the perception of cryptography as a legitimate asset if not a nascent one.
Take a look at: Is Bitcoin heading to $ 100,000 in 2021 or is its price “unsustainable”?
On Saturday, a single bitcoin extended its gain to a record $ 57,492, according to CoinDesk. According to FactSet data, Bitcoin prices have risen more than 90% so far in 2021. In comparison, GC00 gold,
considered a rival to bitcoin, it falls about 6% in 2021. Meanwhile, the Dow Jones Industrial Average DJIA,
has gained almost 3% so far this year, the S&P 500 SPX index,
has risen around 4% and the Nasdaq COMP composite index,
has advanced 7.7% in the same period.
Shares of Tesla, by the way, have risen more than 11% since the beginning of the year.
Wedbush analyst said it is unclear whether Tesla’s move into bitcoins is a trick, in line with Musk’s perception as an iconoclast, but he still believes other corporations are likely to be forced to follow suit. and exchange some of their cash for bitcoins in the future.
“We still expect less than 5% of public companies to follow this route until more regulatory targets are put in place around the crypto market, which clearly begins to adopt a majority adoption in 2021 and we believe it will have a blockchain seismic impact , payments, banks and semis in the coming years “, wrote Ives.