Since Tesla was founded in 2005, it has never had a profitable year, until 2020. For the first time ever, in their years of existence, they marked their first profitable year in 2020 with $721M in profit, largely due to the gigafactory in Shanghai and the popularity of the mass market Model 3. All in, they delivered just shy of 500,000 vehicles. That was cool, but their recent $1.5B investment in bitcoin was cooler, because their 1 month investment in bitcoin has already yielded more profit than their 2020 profits in EV sales.
At its peak price of $58,000 per Bitcoin, Tesla’s $1.5B investment would have been worth roughly $2.5B, a cool $1B profit within a month! Even as the bitcoin price is cooling currently, Tesla’s bitcoin play is still hugely profitable.
Currently, Bitcoin is hovering between $48,000 and $50,000. A price of $48,000 would mean Tesla is sitting on $600M in profit, from just 1 month of holding bitcoin!
Not bad for not doing much at all! At this rate, they’re going to 10X their profit without having to sell a single car!
Square buys another $170M worth of bitcoin
In other news, Square just announced that they have bought another $170M worth of bitcoin, bringing their total treasury allocation to bitcoin from 1% to 5%.
MicroStrategy completes another $1B bitcoin purchase
In other other news, MicroStrategy buys another $1B worth of bitcoin, bringing their total bitcoin holdings to 90,531 BTC, at an average price of $23,985!
As more and more corporations snap up bitcoin as part of their long term strategic asset allocation, do remember… there will only ever be 21,000,000 BTC.
If you’re interested in getting your hands on some bitcoin, remember to get some now, before bitcoin hits 100K!