Much has been made about the huge amount that Tesla Inc. invested in bitcoin, a speculative asset that has not been around since 2009.
Read: Why did Tesla buy bitcoin?
However, early estimates from prominent technology analyst Dan Ives see investment by electric vehicle maker, led by Elon Musk chief executive, already analyzing digital paper profits of at least $ 1 billion , while the price of the asset goes up to records.
“According to our calculations, we estimate that Tesla has so far made about $ 1 billion in profit over the last month … To put this in perspective, Tesla has way to make more from its Bitcoin investments than the profits from selling its shares [electric vehicle] cars in all of 2020, ”Dan Ives, a Wedbush fertility analyst, wrote in a note released Saturday afternoon.
Earlier this month, Tesla Inc. TSLA,
the latest and most famous leading corporate body to participate in bitcoin, highlighting the growing popularity of crypto. Califo-based Palo Alto said on February 8, in a public filing that it bought $ 1.5 billion of BTCUSD bitcoin,
and that it intends to begin accepting payments in the cryptocurrency for its future results.
The move by Tesla to invest in bitcoin was seen as further proof of the legitimacy of older assets that did not exist until about 12 years ago.
On Friday, the price of bitcoin rose to a record around $ 54,000 and broke a total market valuation of $ 1 trillion, further strengthening the view of the crypto as a legitimate if not nascent asset.
Check out: Is bitcoin headed to $ 100,000 in 2021 or is its price ‘volatile’?
On Saturday, one bitcoin extended its gain to a record at $ 57,492, according to CoinDesk. Bitcoin prices are up over 90% so far in 2021, according to FactSet data. In contrast, GC00 gold,
considered a competitor to bitcoin, it is down about 6% in 2021. Meanwhile, the Dow Jones industrial average DJIA,
has gained almost 3% so far in the year, the S&P 500 SPX index,
climbed around 4% and the Nasdaq Composite Index COMP,
improved 7.7% over the same period.
Tesla stock, at least, has risen more than 11% since the beginning of the year.
Analyst Wedbush said it’s unclear whether Tesla’s bitcoin move is a stunt, coinciding with Musk’s idea as an iconoclast, but he still thinks it looks like it may be the responsibility of other corporations follow suit and change some of their currency for bitcoins in the future.
“We still expect less than 5% of public companies to go down this route so that more regulatory target posts are implemented around the crypto market, which is clearly start getting more mainstream adoption in 2021 and we believe it will have a seismic impact for blockchain, payments, banks, and semis in the coming years, ”Ives wrote.