Tesla Reportedly Profited $1 Billion from its Bitcoin Investment

Bitcoin - Tesla CEO Elon Musk
Bitcoin - Tesla CEO Elon Musk

Tesla (NASDAQ: TSLA) has reportedly made over $1 billion profit from its $1.5 billion investment in Bitcoin (BTC). According to Daniel Ives, an analyst at Wedbush Securities, Tesla is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020.”

The electric car manufacturer announced the purchase of over $1.5 Billion worth of Bitcoin, earlier this month. This move provides “more flexibility and to further diversify and maximize returns on our cash,” Tesla Spokesperson reported. In January, Tesla was able to snatch up a good share of the Bitcoin market for $34,800 per token.

Since Tesla’s Bitcoin deal, Bitcoin surged with more than $27,000 after the price of the digital currency rose to an all-time high of $58,000 on Sunday. Meanwhile, Bitcoin’s market capitalization reached a sky-high $1 trillion for the first time in history.

Bitcoin’s 65% price surge would turn Tesla’s $1.5 billion BTC investment into around $975 million. If the company sold the digital currency at $58,332, Tesla’s profit would be more than $1 Billion. Nevertheless, Tesla hasn’t disclosed if they’re still keeping Bitcoin or not.