Tesla, the electric vehicle manufacturer, has been making headlines in recent months due to its investment in Bitcoin. The company announced in February 2021 that it had purchased $1.5 billion worth of the cryptocurrency. This move was seen as a significant endorsement of Bitcoin by a major corporation and sparked a surge in the price of the digital currency.
So, how much did Tesla actually pay for its Bitcoin investment? Let’s take a closer look.
According to Tesla’s annual report filed with the Securities and Exchange Commission (SEC), the company purchased $1.5 billion worth of Bitcoin in January 2021. The report states that the purchase was made “to provide us with more flexibility to further diversify and maximize returns on our cash.”
But how much did Tesla pay per Bitcoin? The company has not disclosed the exact price it paid for the cryptocurrency. However, based on public information, we can make some educated guesses.
At the time of Tesla’s investment, the price of Bitcoin was hovering around $38,000. If we assume that Tesla bought its Bitcoin at market value, it would have received approximately 39,473.68 Bitcoins for its $1.5 billion investment.
However, it’s worth noting that Tesla’s purchase likely had an impact on the price of Bitcoin. The announcement of the investment caused the price of Bitcoin to surge, reaching a new all-time high of over $58,000 in February 2021. This means that if Tesla had waited just a few weeks to make its purchase, it would have paid significantly more for the same amount of Bitcoin.
It’s also possible that Tesla negotiated a discounted price for its Bitcoin purchase. The company has not confirmed this, but it’s not uncommon for large investors to receive preferential pricing when purchasing large amounts of cryptocurrency.
Regardless of the exact price Tesla paid for its Bitcoin, the investment has already proven to be a wise move. In April 2021, the company announced that it had sold 10% of its Bitcoin holdings for a profit of $101 million. This means that Tesla’s remaining Bitcoin investment is currently worth around $2.2 billion.
The decision to invest in Bitcoin has not been without controversy, however. Some critics have questioned the sustainability of Bitcoin as an investment, citing concerns about its volatility and environmental impact. Tesla CEO Elon Musk has also faced criticism for his comments on Twitter about cryptocurrency, which have been known to cause significant fluctuations in the price of Bitcoin and other digital currencies.
Despite the controversy, it’s clear that Tesla’s investment in Bitcoin has paid off so far. The company has not only diversified its cash holdings but also benefited from the surge in the price of the cryptocurrency. Whether or not Bitcoin will continue to be a profitable investment for Tesla remains to be seen, but for now, the company’s decision to get involved in the world of cryptocurrency seems to have been a smart one.