Elon Musk Has Already Made $ 1 Billion In Profits From Bitcoin

    The rise in the price of the main cryptocurrency allowed Tesla to make as much profit by holding BTC as it did by selling cars in the second quarter.

    Tesla’s foray into the bitcoin market certainly paid off in 2021, especially after the price of BTC started to soar, topping US $ 58,000 by midnight. Today it has come down a bit from that price and stands at $ 57,683.

    Recall that Tesla bought $ 1.5 billion worth of bitcoins on February 8 and currently owns around 43,200 BTC, which, at a price of $ 58,000 reached a few hours ago, is worth around $ 2.5 billion. This is about 65% or US $ 1 billion more than what the automaker paid for the cryptocurrency.

    In the second quarter, Tesla sold 10% of its bitcoin holdings, or around 46,000 BTC, at an average reported price of around $ 50,000 per token. In its second quarter earnings report, the company said it recorded US $ 128 million in proceeds from its bitcoin sales.

    In July, Tesla recalled that it still had $ 1.3 billion in bitcoin and had not bought or sold more BTC than stated.

    Tesla earns as much from bitcoin as it does from car sales

    Following the latest bitcoin price spike, Tesla’s net profit from its cryptocurrency holdings turned out to be as high as its second quarter income.

    In detail, Tesla had announced a net profit of $ 1.14 billion for the second quarter, crossing the billion dollar mark for the first time. These revenues are part of the $ 11.96 billion in revenue Tesla earned primarily from the sale of cars, or roughly $ 10.21 billion. The remaining $ 354 million comes from the sale of regulatory credits.

    Tesla revealed on October 1 that it had sold 241,300 electric vehicles in the third quarter, up from 201,250 vehicles in the previous quarter. Combined with the gains from investing in bitcoin, expectations are high for the company’s profits.

    We believe the third quarter will be the strongest in TESLA history“Said Alexander Potter, Piper Sandler analyst.

    Other winners: Microstrategy and Square.

    Two other major bitcoin investment firms, Microstrategy and Square, have enjoyed significant gains from the current boom.

    Business intelligence firm MicroStrategy bought roughly $ 3.15 billion worth of bitcoin in multiple rounds at different prices. With its first purchase on August 11, 2020 alone, the company’s net bitcoin earnings are now approaching $ 6.3 billion, nearly doubling its investment.

    At the same time, Square, the payment services company of Jack Dorsey, has also made huge gains by holding bitcoin, which is now worth more than US $ 442 million from its investment of US $ 220 million.

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