In summary
- Tesla owns 11,509 BTC, whose value has surpassed $1 billion following a rise in the price of Bitcoin.
- In 2021, Tesla purchased $1.5 billion in Bitcoin to diversify and maximize returns on its cash.
- Tesla’s capitalization increased 39% after Trump’s re-election, boosting Elon Musk’s wealth to $320 billion.
Electric car company Tesla’s strategic bet on Bitcoin is proving very lucrative, with the company now holding more than $1 billion of the world’s largest Cryptocurrency.
The automaker currently holds 11,509 BTC, which has significantly appreciated in value as Bitcoin reached an all-time high of $89,560, according to data from Blockchain analytics firm Arkham Intelligence.
In February 2021, Tesla announced that it purchased $1.5 billion in Bitcoin to “have more flexibility to further diversify and maximize returns on our cash” in a filing with the U.S. Securities and Exchange Commission.
The value of Tesla’s Bitcoin holdings have more than doubled since the start of this year amid a breakneck resurgence in cryptocurrencies, reaching $495 million in profit in early November, according to Arkham data.
The rise in Tesla’s Bitcoin value is driven by rising cryptocurrency prices rather than new acquisitions.
The leading cryptocurrency raised its market capitalization to $1.75 trillion amid broader market fervor, overtaking silver in global rankings.
Amid growing institutional interest, optimism is swirling around Bitcoin exchange-traded funds in the US, and market sentiment is high following the re-election of pro-crypto President Donald Trump.
That bullish momentum has also carried over to Tesla shares, which rose 8% in after-hours trading to $350, according to Google Finance.
In the last month, as the election season intensified, Bitcoin rose more than 40%. It is currently trading at $88,768.81, up more than 9% in the last 24 hours, according to data from CoinGecko.
Since Trump’s victory, Tesla’s market capitalization has increased nearly 39%, bringing CEO Elon Musk’s personal wealth to an estimated $320 billion, according to Forbes.
The Austin-based company moved its entire wallet with Bitcoin last month, but analysts believe this was simply a wallet rotation rather than a sales pitch.
Arkham Intelligence revealed that Tesla’s Bitcoin was dormant for almost two years until October 15. In a series of transactions, Tesla moved approximately $765 million worth of Bitcoin into seven new wallets, which are still believed to be under the company’s control.
While Tesla’s strategy focuses on securing its current Bitcoin holdings, companies like MicroStrategy continue to expand aggressively.
Under the leadership of Michael Saylor, MicroStrategy recently acquired an additional 27,200 BTC, bringing its total reserves to 279,420 BTC, valued at over $24 billion. Unlike Tesla, MicroStrategy’s strategy reflects a complete belief in Bitcoin as a major treasury asset.
Edited by Sebastian Sinclair
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