According to a new report, Tesla made more money purchasing BTC in one day than it did selling cars in the past quarter as we read further in the latest Bitcoin news today.
The car manufacturer profited from the latest $1.5 billion BTC purchase in one day than it actually did by selling cars in the past quarter in 2020. With the huge position purchasing, BTC’s price increased 23 percent and Tesla made about $365 million dollars in one day. After Tesla announced it will take a $1.5 billion position in BTC, the cryptocurrency market went crazy and the world’s biggest cryptocurrency increased by $10,000 in a few hours and dragged the rest of the market with it.
While the entire industry was ecstatic about the huge market gains, it was Tesla that turned the most profit on the investment. The company saw the value of the investment increase by more than 23% in one day and given the fact that the position was worth $1.5 billion, the profit came down to $356 million. While this could not seem like a very significant number, it’s more than the company made selling its cars for the entire fourth quarter in 2020.
According to CNN, the company reported that its Q4 2020 net income adjusted at $270 million so the number was short of the $780 million net income that was estimated by Wall Street that erased a few percent of the TSLA valuation. The low net income surprised analysts with the company posting quarterly revenue of $10.7 billion marking a 46 percent increase from the past year. The adjusted income was up by 6700 percent from the profits the company posted in 2019 when it marked the first year that Tesla turned a profit.
As reported previously, Tesla’s investment has just put Bitcoin’s market cap en route to $1TN while many found the prediction made by Plan B in his bullish paper “Modeling Bitcoin Value with Scarcity” back in 2019 for the same level, crazy. Following the latest developments, this prediction seems to be closer than ever. Plan B noted that certain precious metals like gold have maintained their monetary role because of their costliness and the limited supply rate and he applied the same argument to BTC which is now more valuable as a programmed algorithm that reduces the supply by half every four years to mint 21 million units.
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