Tesla made a big move last week after buying $1.5 billion worth of Bitcoin. The ripple effect it made may result in “impressive profits.”
Multiple reports have credited Telsa for Bitcoin’s price, hitting a historic $50,000 all-time high on Tuesday. This led other major companies to consider the idea of cryptocurrency as part of their network.
Tesla CEO Elon Musk‘s tweet alone in late January, that only said “#bitcoin” and “In retrospect, it was inevitable,” sent a 20% increase in the value of Bitcoin, says Nasdaq. Of course, revealing the $1.5B purchase only drove the BTC price further to the roof.
If this rising rally continues, then we can only expect another record-breaking all-time high for BTC. If that’s the case, then the value of Tesla’s purchase would also increase by many folds.
And more companies are following #Tesla and MicroStrategy.
This time it’s SynBiotic, the first German Listed company.
— Michaël van de Poppe (@CryptoMichNL) February 17, 2021
Tesla’s BTC gains
The current Bitcoin price is notedly already around $51,348 as of early Wednesday, per Coindesk. With this scenario, if Tesla has 51,137 Bitcoin, then it’s worth around $2.63 billion.
The computation on the Yahoo! Finance report still has the BTC price from last Tuesday, which is $48,450. Analyzing that alone, Tesla made a minimum profit of $0.29 billion and a maximum of $0.98 billion.
Tesla's Bitcoin treasure is now worth: 2,213,017,772 USD (+47.5%) #bitcoin
— Bitcoin Treasuries (@QueTesoro) February 17, 2021
The finance news outlet notes:
“The gain on the Bitcoin purchase is also notable as it may be more than Tesla made from its entire business in fiscal 2020.”
For its first profitable year, the fiscal year 2020, it was noted that the electric car company only gained $721 million.
Of course, Tesla never disclosed the exact amount of Bitcoin it got from its purchase. What everyone is waiting for now is whether or not Tesla will continue to hold on to its Bitcoin or sell some for profits.
Understanding how BTC’s current value
For those who still can’t fathom the value of Bitcoin today. Here’s a story of a YouTuber, as reported by Cointelegraph, who “paid $1.8 million in BTC at today’s prices” for two of its secondhand honda sports cars.
YouTuber dubbed as “NSXTRA” tells the anniversary story of his Honda NXS Targa purchase from back in 2017. At the time, he got it for a sweet deal of only $30,500 and paid for it with Bitcoin.
In 2017, the BTC price was only around a few thousand dollars. So the “deal” only cost him around 30.5 BTC. However, today, that Bitcoin amount is already around $1.5M. In hindsight, it may have been a not-so-great of a deal at all.
Aside from the Targa, NSXTRA also told the story of another Honda sports car that he bought on a Black Friday in 2018. At the time, the BTC price was only around $4,300, so he spent 6.5 BTC for the purchase.
In his video, he mentioned that the value of his 6.5 BTC currently is already around $293,000. But with today’s price spike, $51,348 (as of early Wednesday), that’s already roughly $333,762.
“I obviously have regrets about that because I can buy a lot of NSXs today for that price,” says NSXTRA.
With how the trend is going so far, we can only expect higher spikes for BTC. Elon Musk is already one of the richest men in the world, and his latest investment only goes to show how influential his trading moves can be.
Featured image courtesy of Craig Adderley/Pexels