The market continues to experience tremendous growth and for that reason, it has been an excellent quarter for those who love invest in bitcoin. Last Saturday, the digital currency also managed to exceed $ 60 for the first time ever.
These recent price hikes have been good news for Tesla and its CEO, Elon Musk, who recently bought $ 1,5 billion worth of Bitcoin, as reported in his filings with the U.S. Securities and Exchange Commission. According to analysis, the rise in the value of bitcoins has seen Tesla's investments increase by more than 70%.
A definitely profitable investment in the short term
Although the company did not disclose the exact value, it bought the bitcoins at an average price of $ 60.000, the company is estimated to have made $ 1,2 billion from its investments. Given that the company bought the bitcoins in January, it is estimated that it currently owns around 50.000 bitcoins, based on BTC prices at the moment.
According to data from previous years, the company is likely to have made more profit from its investment in Bitcoin than it has done from the earnings from its cars in recent years. A Twitter user noted that: "Tesla has made more money with bitcoin than in 13 years of selling cars."
Dan Ives, a specialist at Wedbush Securities, following the investment last month estimated that Elon Musk's company had made a whopping $ 1 billion in paper profits thanks to its investment in the crypto currency. At the time, he explained that to put things under a simpler point of view, Tesla is on the best path to making more investments in BTC, compared to what it has earned throughout 2020 from selling its cars.
According to the company that produces electric vehicles, it bought Bitcoin for "greater flexibility of its portfolio and maximizing returns". Additionally, Musk also announced that Tesla may soon be accepting bitcoin as a payment method.
Musk is always very active on Twitter
Tesla's CEO, responding to a tweet, said it was not an investment to have bought bitcoin. In his tweet, in fact, he said that he is not an investor (yes, right. Ed.), But an engineer. Other than Tesla, he says he owns no other publicly traded stock. However, he believes the currency will soon become obsolete and he is open to new solutions.
Musk is not only a supporter of Bitcoin, but also of other cryptocurrencies. In particular, in recent days he has repeatedly supported his support for DOGE, a cryptocurrency whose symbol is that of a dog, born a bit as a joke.
Musk has always been very vocal about the cryptocurrency community. A few days ago, when asked if Coinbase should add Dogecoin (DOGE) to its platform, Musk responded with a big "Yes!"