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According to foreign media reports, Tesla’s $1.5 billion investment in Bitcoin not only made headlines, but also brought real profits to the company, and this part of the profit even exceeded the company’s entire year of last year. Car sales.
On February 19, the price of Bitcoin broke through the $55,000 mark, and its market value also exceeded $1 trillion. This means that if the amount of Bitcoin held by Tesla does not change compared to January 31, then its book profit has reached 930 million U.S. dollars. In contrast, for the full year of 2020, Tesla's electric car sales revenue was $7.21. In other words, in the past 20 days, Tesla's profit earned from Bitcoin is 30% higher than the company's sales last year.
(Image source: Tesla)
In the investment world, the skyrocketing price of Bitcoin has always been a topic of constant debate. Many investors worry that the 546% year-on-year increase of Bitcoin (data from CoinDesk data) has caused a bubble. Silver has also warned that Bitcoin, an asset, is likely to become 'worthless.'
However, Tesla CEO Elon Musk defended the company’s investment. On February 18, Musk said in an interview: 'Compared with cash, Bitcoin is a less stupid form of liquidity. Holding some Bitcoin, for a'Su0026P 500' company, It's also a risky behavior.'
On February 8, Tesla disclosed in a document submitted to the U.S. Securities and Exchange Commission (SEC) that the company had purchased $1.5 billion worth of Bitcoin. In this document, Tesla stated that the purchase of Bitcoin was to “improve flexibility, thereby further diversifying and maximizing our cash return”. After the news was exposed, Tesla's stock price rose by 2%, and the price of Bitcoin also hit a record high of $44,795.20.
Although Jamie Dimon, CEO of JP Morgan Chase, called Bitcoin 'similar to a fraud' in 2017, many investment institutions have paid more and more attention to this cryptocurrency in recent years. Now, even JP Morgan Chase predicts that the long-term price of Bitcoin is expected to reach 146,000 US dollars, but a recent report released by the agency shows that, under the current volatility, the value of Bitcoin is only 25,000 US dollars.
Currently, everyone is paying attention to which institutional investor will become a supporter of Bitcoin. Tyler Winklevoss, a billionaire and co-founder of the cryptocurrency exchange Gemini, wrote on Twitter: “If you are the CEO of a company and are considering adding Bitcoin to the company’s balance sheet, you still have a chance to become an early adopter. , But this situation will not last long.'