If you invested $1,000 in Bitcoin when Tesla bought the leading cryptocurrency, here's how much you'd have today

Major cryptocurrencies Bitcoin BTC/USD It reached a new all-time high in March 2024, and there is a possibility that it will head for even higher prices in the run-up to the 2024 presidential election.

Let's look back at the purchase of virtual currency by. tesla company TSLA And how much could investors have made by following the electric car companies' lead?

what happened: meanwhile micro strategy Tesla may have led the way by adding Bitcoin to its balance sheet and holding the major cryptocurrency since 2020, but the purchases made in January 2021 were disclosed to investors in February 2021. is not far behind.

Tesla announced on February 8, 2021 that it had purchased $1.5 billion worth of Bitcoin. This purchase was seen as an important catalyst for the future of cryptocurrencies and contributed to the rise in Bitcoin's price on the day.

Tesla later announced that it sold $272 million in Bitcoin in the first quarter, bringing its revenue from Bitcoin to $128 million and saying it had a “positive impact” on profitability for the quarter. .

In fiscal 2022, Tesla announced that it would sell 75% of its Bitcoin during the second quarter, bringing $936 million in cash to its balance sheet.

In recent quarters, Tesla has recorded $184 million in “digital assets” on its balance sheet. This number can include both Bitcoin and Bitcoin. dogecoin doge/usda cryptocurrency that can be used to purchase items from Tesla's online store.

Tesla has previously said it can increase or decrease its holdings in digital assets “at any time” depending on its business needs and its view of the cryptocurrency market.

Recent reports suggest that Tesla is moving its Bitcoin holdings to an unknown wallet, which could indicate a possible sale of the cryptocurrency.

Here we take a look at how Bitcoin has fared since the Tesla acquisition.

Invest $1,000 in Bitcoin: This leading cryptocurrency fell in 2022 thanks to several macroeconomic issues and crypto events such as the FTX bankruptcy that disrupted the sector.

Fast forward to 2024, and Bitcoin hit a new all-time high in March. This follows the approval of Bitcoin ETFs, which is expected to see strong demand and prompt more financial institutions to purchase Bitcoin.

Following the Tesla acquisition announcement, Bitcoin soared to $46,203.93 on February 8, 2021, from the previous day's high of $39,621.84.

If you invested $1,000 in Bitcoin at the high price on February 8, 2021, you could have bought 0.0216 BTC. Your $1,000 investment would be worth $1,468.65 today, an increase of 46.9%.

If an investor had invested $1,000 in Tesla stock instead, their investment would have been $758.39, a decline of 24.2% over the same period.

Bitcoin has outperformed Tesla stock since the company revealed its Bitcoin purchases, but no major cryptocurrency has outperformed Tesla stock. SPDR S&P 500 ETF Trust spytracks the S&P 500 index.

A $1,000 investment in the ETF would be worth $1,491.58 today, an increase of 49.2% over the same period. This means investors could have done better investing in the S&P 500 Index than in Bitcoin.

Investors who bought Bitcoin have outperformed top stocks and market indexes over many periods of time, but the day the Tesla purchase was revealed was not one of them.

MicroStrategy Co-Founder michael saylor Encouraging Tesla CEO Elon Musk Had Mr. Musk listened and followed through, Tesla could have made even bigger profits from its Bitcoin investment and provided a better starting point for investors who follow.

Bitcoin hit an all-time high of $73,750.07 on March 14, 2024.

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This article was previously published and updated by Benzinga.