Just a few weeks ago, electric car company owned by the world’s richest man; Elon Musk announced that it had invested the sum of $1.5 billion in world’s largest crypto currency; Bitcoin. The company has reportedly made almost a billion dollars in profits from its investment in Bitcoin.
According to Daniel Ives; an analyst at Wedbush Securities, Tesla has gained around a billion dollars in paper profits from its investment in Bitcoin not up to a month ago. According to him in a note published on Saturday, he said that Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric vehicle cars in all of 2021. The company made the announcement that it had purchased Bitcoin worth $1.5 billion through a filing at the Securities and Exchange Commission. The company’s reason for deciding to invest in Bitcoin was simply for ‘more flexibility to diversify and maximize returns on our cash’. The company is sure maximizing returns on its cash and this does not seem to be coming to an end soon.
Tesla never revealed the price at which it acquired the crypto currency, neither did the company say when it did but announced earlier this month that it had purchased Bitcoin worth $1.5 billion at that time. The company also promised that it would start accepting Bitcoin as a means of payment for its electric car in the future.
This year has been a great year for Bitcoin. From continually topping all-time highs to hitting the trillion dollar market value mark just last week. With Bitcoin’s continual increase in value (experts project the crypto currency would hit $70,000 for one BTC before the middle of the year), Tesla’s investment in Bitcoin promises a continuous robust yield, more robust than the profits from the sale of its electric cars this year, according to Daniel Ives.
Crypto currency continues to prove to be the best way to save, invest and transact. You might want to check out our top seven reasons to invest in crypto currency by clicking here.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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