Augmentin Prix en France Cialis Preço Genérico Doxycycline Label Risques Cialis

Tesla bitcoin gambit already made $1 billion, greater than 2020 revenue from automobile gross sales, estimates analyst


Much has been made of the large amount of money Tesla Inc. invested in Bitcoin, a speculative commodity that has only been around since 2009.

Read: Why did Tesla buy Bitcoin?

According to initial estimates by well-known technology analyst Dan Ives, the electric vehicle maker’s investment, led by outspoken CEO Elon Musk, already sees a profit from digital paper of at least $ 1 billion as the price of the asset soars to record levels.

“Based on our calculations, we estimate that Tesla has made around $ 1 billion in profit so far last month. To put this in perspective, Tesla is well on its way to getting more out of its Bitcoin investments than from selling its profits [electric vehicle] Cars all of 2020, ”Wedbush prolific analyst Dan Ives wrote in a note posted Saturday afternoon.

Earlier this month, Tesla Inc. TSLA was the youngest and most well-known large company to acquire a stake in Bitcoin at -0.77%, underscoring the increasing adoption of crypto. The Palo Alto, California-based company announced in a public filing on Feb. 8 that it had purchased $ 1.5 billion (+ 0.73%) in Bitcoin BTCUSD and is expected to make payments in cryptocurrency in the future will accept its products.

Tesla’s move to invest in Bitcoin was seen as further confirmation of the legitimacy of the nascent asset, which only existed about 12 years ago.

On Friday, the price of Bitcoin soared to a record high of around $ 54,000, surpassing an overall market valuation of $ 1 trillion, further bolstering the perception of crypto as a legitimate, if not nascent good.

Check: Will Bitcoin be at $ 100,000 in 2021 or is the price “unsustainable”?

According to CoinDesk, a single bitcoin on Saturday expanded its profits to a record $ 57,492. According to FactSet data, Bitcoin prices have so far increased by over 90% in 2021. For comparison: Gold GC00, + 0.32%,
Considered a rival to Bitcoin, it’s down about 6% in 2021. Meanwhile, the Dow Jones Industrial Average DJIA (+ 0.00%) has risen almost 3% in the year, the S&P 500 Index SPX (-0.19%) has risen by around 6% and the Nasdaq Composite Index COMP , + 0.07%, rose by 7.7% in the same period.

Incidentally, Tesla shares have risen by over 11% since the beginning of the year.

The Wedbush analyst said it was not clear whether Tesla’s Bitcoin move was a ploy consistent with Musk’s perception as an iconoclast, but continues to believe that other companies are likely to be forced to follow suit follow and exchange part of their money for this bitcoins in the future.

“We still believe that less than 5% of publicly traded companies will go down this path until more regulatory targets are set for the crypto market, which is clearly gaining acceptance in 2021 and we believe that will have seismic effects on blockchain , Payments, Banks, and Semis in the Years to Come, ”wrote Ives.

You might also like

Leave A Reply

Your email address will not be published.