Electric vehicle company Tesla’s strategic bet on Bitcoin is proving lucrative as the company now owns more than $1 billion worth of the world’s largest cryptocurrency.
The automaker currently owns 11,509 BTC, which has increased significantly in value as Bitcoin hit an all-time high of $89,560, according to data from the blockchain analytics firm Arkham Intelligence.
In February 2021, Tesla announced it had purchased $1.5 billion worth of Bitcoin for “greater flexibility to further diversify and maximize returns on our money” in a submit with the US Securities and Exchange Commission.
The value of Telsa’s Bitcoin holdings has more than doubled since the start of this year amid a heady crypto resurgence, rising to $495 million in profits in early November, Arkham data shows.
The rise in Tesla’s Bitcoin value is driven by rising crypto prices rather than new acquisitions.
The top crypto pushed its market cap to $1.75 trillion amid broader market fervor. catch up on silver in global rankings.
Amid increased institutional interest, optimism is swirling around US exchange-traded Bitcoin funds, and market confidence is high following the re-election of pro-crypto President Donald Trump.
That bullish momentum has also spilled over to Tesla’s shares, which rose 8% to $350 in after-hours trading, according to Tesla figures. Google Finance.
Over the past month, as election season intensified, Bitcoin grew by more than 40%. It is currently trading at $88,768.81, up more than 9% in the past 24 hours, per CoinGecko data.
Since Trump’s victory, Tesla’s market capitalization has increased by almost 39%, pushing CEO Musk’s personal wealth to an estimated $320 billion. Forbes.
The Austin-based company moved its entire Bitcoin holdings last month, but analysts believe this was just a portfolio rotation and not a selling proposition.
Arkham Intelligence revealed that Tesla’s Bitcoin had been inactive for almost two years until October 15. In a series of transactions, Tesla moved approximately $765 million worth of Bitcoin to seven new wallets, which are believed to still be under the company’s control.
While Tesla’s strategy focuses on securing its current Bitcoin holdings, companies like MicroStrategy continue to expand aggressively.
Under CEO Michael Saylor, most recently MicroStrategy bought another 27,200 BTC, bringing the total reserves to 279,420 BTC, worth over $24 billion. Unlike Tesla, MicroStrategy’s strategy reflects a full-throttle belief in Bitcoin as one of the most important treasury assets.
Edited by Sebastian Sinclair
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