banner
Tesla has already made 40% profit on bitcoin
Tesla has already made 40% profit on bitcoin
Bitcoin

Tesla has already made 40% profit on bitcoin

By Marco Cavicchioli - 15 Feb 2021

Chevron down
Listen this article
download

Tesla‘s bitcoin investment, announced a week ago, is said to have already returned 40%.

This was claimed by Anthony Pompliano on Twitter, assuming an average purchase price of around $35,000. 

Yesterday, the price of BTC rose to close to $50,000, a new all-time high, and if Tesla had bought at an average price of $35,000, the gain would already be 42%. 

In reality, however, the average price at which Tesla bought bitcoin is not precisely known. It is known that it invested $1.5 billion, but it is not known precisely how many BTC it bought. 

On the day of the announcement to the SEC, February 8th, 2021, the price was around $38,000, so if it had bought at that price, and sold yesterday, the gain would have been 31%, or $465 million. 

But surely the purchase was made before February 8th. 

The last time the price of BTC was around $35,000 was on February 3rd, but there are reasons to believe that the purchase was made earlier. 

Notably on January 29th, 2021, when Elon Musk put #bitcoin in the biography of his official Twitter profile, he simultaneously tweeted: 

“In retrospect, it was inevitable”. 

This curious coincidence suggests that the purchase of BTC may have been made on that day, or perhaps the day before. 

In those days, the price of bitcoin fluctuated between $30,000 and $32,000, so if we assume an average purchase price of $31,000, the gain yesterday would have been as much as 61%, in the event of a sale, equivalent to $915 million.

However, there is no record of Tesla selling its BTC, so this is only a virtual gain, though this kind of gain does, to all intents and purposes, enter the company’s balance sheet as profit. 

Tesla falling after Bitcoin purchase

At the same time, however, Peter Schiff points out that the value of the company’s shares has fallen by about 5% since the BTC purchase was announced. 

In fact, on the day of the announcement, TSLA’s share price rose from $848 to $874, and then fell to $856. In the following days, however, the decline continued until a low of $789 on February 12th. It is currently worth $816. 

However, it should not be forgotten that these values are still extremely high, since only three months ago they were worth less than half as much.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.