Tesla’s Bitcoins are now worth $1 billion more than when Elon Musk approved the purchase in February.
Tesla’s BTC Tokens Are Now Worth $2.5 Billion
Tesla’s daring Bitcoin purchase has paid off in 2021, as the BTC price has risen above $57,000 this month.
Tesla currently owns approximately 43,200 BTC. This is equivalent to about $2.5 billion dollars at current prices, data from online monitoring source Bitcoin Treasuries see. This is about 65% or $1 billion more than what the automaker paid in February when Elon Musk’s company revealed that it had added $1.5 billion worth of BTC to its balance sheet.
In the second quarter, Tesla sold about 10% of its Bitcoin holdings (4,600 BTC) at an average price of about $50,000 per token. In his profit report on In the second quarter, the company reported that it had made $128 million in profit from Bitcoin sales.
Tesla made first billion profit in second quarter from car sales
Tesla’s net profit from his Bitcoin holdings appears to be just as high as his net profit from car sales from the second quarter.
In detail, Tesla reported net profit of $1.14 billion for the second quarter. This is the first time it has ever crossed the $1 billion mark. The income was part of the $11.96 billion in revenue that Tesla earned primarily from selling cars – about $10.21 billion.
Tesla revealed on Oct. 1 that it had delivered 241,300 electric vehicles in the third quarter. in the previous quarter this was 201,250 vehicles. Combined with Tesla’s Bitcoin gains, expectations are high for the earnings to be released after the market closes on Oct. 19.
Will other companies follow?
So far, Tesla’s Bitcoin strategy has been very successful. This sets a good example for other companies that could replace some of their dollar reserves with BTC.
Tesla has made a lot of profit buying the digital currency, but other companies have made even more profit with BTC.
For example, MicroStrategy bought about $3.15 billion worth of Bitcoin, spread over multiple purchases. The first purchase dates back to August 11, 2020. Now, the company’s net Bitcoin profit is now close to $6.3 billion, nearly doubling its investment.
Jack Dorsey’s payment services company, Square, has also made significant profits from holding Bitcoin. His stock is now worth more than $442 million of the $220 million investment.