Electric car maker Tesla made nearly $ 1 billion in paper profits from its investment in currency BitcoinAccording to analyst Daniel Ives. Daniel Ives, From Wedbush stock brokerage.
Ives estimated in a note that the company is on track to make more of its Bitcoin investment than the profit from selling its electric cars in the whole of 2020.
And earlier this month, the US electric car maker revealed in a Securities and Exchange Commission Depositary that it had bought $ 1.5 billion in bitcoin in order to increase flexibility to increase diversification and increase the returns of its money.
The company said: The purchase was made sometime in January, without disclosing when or at what price it bought Bitcoin, and it is not clear whether Tesla has sold any of the Bitcoins yet.
Bitcoin has witnessed a major rally this year, as it touched new record highs regularly, the market value of the currency exceeded a trillion dollars for the first time last week, and the value of the cryptocurrency rose by 94 percent since the beginning of the year.
Ives did not explain how it reached this account, but according to CoinDesk data, Bitcoin’s price increased from $ 34,793 on January 31 to $ 56,465 on today’s date.
This represents an increase of nearly 65 percent, which puts the profit of the $ 1.5 billion Bitcoin investment at about $ 975 million.
Based on the currency’s highest level at $ 58,332, this profit is more than $ 1 billion.
Ives said: While investing Bitcoin is a side affair for Tesla, it was clearly a good initial investment and a trend that we expect may have a ripple effect in other public companies over the next 12 to 18 months.
(Elon Musk) Tesla CEO, Elon Musk, is a supporter of cryptocurrencies, but recently said: The price of Bitcoin and Ethereum looks high.