Two years after Tesla invested in Bitcoin, the cryptocurrency is still 33% below its original purchase price – showing no signs of improvement. It’s time for Elon Musk and his company to take action if they want to see any return on their initial investment; currently, most of the profits are disappearing into thin air.
Tesla Lost A Considerable Amount of Money in Its Bitcoin Investments
Elon Musk’s declaration of purchasing $1.5 billion worth of Bitcoin in February 2021 catalyzed a dramatic surge for the cryptocurrency, with BTC/USD reaching its first all-time high this year of $58,000 by April. As per data from Bitcoin Treasuries, Tesla bought Bitcoins at an approximate rate of $34,700 apiece around that period – and it proved to be an incredibly profitable venture as we see it today!
In March of that year, Tesla sold 10% of its Bitcoin holdings. It promptly reentered the crypto game as a major investor until an unexpected announcement in July 2022 revealed it had liquidated 75% of its remaining coins at a loss – BTC/USD was trading near $23,000. This sale happened during Q2 2022 and netted around $29,000 per coin – despite this hit to their bottom line Musk insists this did not reflect his opinion on Bitcoin‘s investment potential.
Even though Tesla has held onto 9,720 BTC since acquiring them, the current market prices have not allowed for any gains on their investment. Bitcoin Treasuries reports that they are still 33% away from having a remaining inventory valued at $225 million by February 2023.
On the other hand, Tesla’s Stocks and Bitcoin Are Rising Together
Last year, Cointelegraph reported on the collaboration between Bitcoin spot cost and Tesla stocks, both experiencing a substantial surge in early 2023. As of one year since Bitcoin’s purchase date, TSLA has rocketed up by 66%, leaving Bitcoin in its dust with an increase of almost 40% (according to data analyzed from Cointelegraph Markets Pro and TradingView). This remarkable success story is another example of how Cryptocurrency continues to thrive despite ever-changing markets!
Despite the rebound’s potential to fascinate mainstream media outlets this month, they chose instead to spotlight Tesla’s US dollar losses of $140 million in net BTC. Additionally, Musk has become more widely recognized for his ties with other crypto assets, such as Dogecoin.
You might check: DCG Commenced Dumping its Grayscale Shares With Nearly 50% Discount! What Does it Mean?
