Here is How Much Tesla Would Have Made If They Hadn’t Sold Their Bitcoins
Tesla's recent decision to sell its Bitcoin holdings resulted in missing out on potential profits exceeding $300 million.
In February 2021, the company entered the cryptocurrency market with a $1.5 billion investment when Bitcoin was valued at around $36,000.
Since then, Tesla’s stock declined by about 40%, significantly underperforming Bitcoin, which saw a 7.39% increase against the US dollar. Tesla sold approximately 10% of its Bitcoin in March 2021 and 75% in Q2 2022, a move explained by CEO Elon Musk as a strategy to showcase Bitcoin’s liquidity and bolster Tesla’s financial position during uncertain times.
Had Tesla retained its entire Bitcoin investment, it could have hypothetically gained over $300 million, given Bitcoin’s current value of around $41,500. Tesla kept about 9,720 BTC, signaling a more cautious approach.
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Previous Bitcoin sales by Tesla coincided with quarters of weakened free cash flows, suggesting Musk used Bitcoin to support finances during challenging periods. However, Tesla’s free cash flows rose throughout 2023, reaching $2.1 billion in Q4 and totaling $4.4 billion for the year.
Analysts anticipate a potential increase in Bitcoin’s value in 2024, driven by the approval of spot Bitcoin exchange-traded funds in the US and the upcoming Bitcoin halving event. Tesla’s decisions regarding its remaining Bitcoin holdings seem influenced by an improving financial outlook and the evolving cryptocurrency landscape.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
