Tesla makes $1 billion profit on the Bitcoin purchase and it’s about to make more money from the investment rather than from selling its electric cars, as the analyst at Wedbush Securities noted so let’s read more in our latest BTC news.
American car giant Tesla makes some massive gains from its BTC investment and made up to $1 billion in profit according to a new report. The analyst at Wedbush Securities which is a private investment company in the United States calculated that Tesla made about $1 billion after purchasing BTC and Daniel Ives, estimated that the profits could become bigger in the near future. Amid Bitcoin’s parabolic surge to $1 trillion assets, Ives said that Tesla will make more money from its BTC investment than from the profits of selling cars in 2020. Ives noted that Tesla’s move will affect other public companies as well:
“While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial investment and a trend we expect could have a ripple impact for other public companies over the next 12 to 18 months. We still expect less than 5% of public companies will head down this route until more regulatory goal posts are put in place around the crypto market, which is clearly starting to gain more mainstream adoption in 2021.”
Tesla announced its $1.5 billion BTC investment as a part of the filing with the US SEC and still remains unclear how much BTC Tesla purchased and at what price as the company didn’t disclose. As BTC traded between $29K and $37L back in January, a $1.5 billion investment could mean that Tesla holds about 40,000 or 51,000 BTC. BTC is trading now at $56,239 or 15% higher than a week ago according to the data that we have. In late January, Tesla reported its first full-year profit and stated that the company earned $721 million in 2020 after the losses recorded at $862 million.
As reported recently, Miami Mayor Francis Suarez suggested that there are bigger events that are coming up in the crypto world after Tesla’s recent BTC purchase. He expects Bitcoin adoption to surge and that this is only the beginning. Suarez said that the recent Bitcoin purchase by Tesla is a part of the transition into the mainstream culture and he said there will be more groundbreaking events that will transform the entire industry forever.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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