American electric car giant Tesla has seen some substantial gains from its Bitcoin ( BTC ) investment, reportedly having composed to $1 billion inside profit, according to a new review.
An expert at Wedbush Securities, a personal investment firm in the United States, has calculated that Tesla has made “roughly $1 billion” within the aftermath of its $1. 5 billion Bitcoin investment . Daniel Ives estimated Tesla’s Bitcoin income in an investor note on Saturday, CNBC reports .
Amid Bitcoin’s parabolic surge to become a $1 trillion asset , Ives said , “Tesla is on a trajectory to make more from its Bitcoin investments than profits from selling its electric automobile cars in all of 2020. ”
Ives noted that Tesla’s proceed is likely to affect other open public companies. “While the Bitcoin investment is a side show for Tesla, it’s clearly been a good initial purchase and a trend we anticipate could have a ripple effect for other public businesses over the next 12 to eighteen months, ” he published. However , Ives expects only a small part of the market to follow the trend due to regulatory uncertainness issues:
“We still expect less than 5% of public companies will head down this route until more regulatory goal posts are put in place across the crypto market, which is obviously starting to gain more popular adoption in 2021. ”
Tesla officially announced its $1. five billion Bitcoin investment included in its submitting with the Oughout. S. Securities and Exchange Commission on Feb. 8. It still remains ambiguous how much Bitcoin Tesla purchased and at what price, as the company did not disclose this information in the filing.
As Bitcoin traded among roughly $29, 000 and $37, 000 in the month of January, a $1. 5 billion investment can mean Tesla holds between 40, 000 and fifty-one, 000 BTC. At the time of writing, Bitcoin is trading on $56, 239, up about 15% over the past seven days, according to data from the Cointelegraph Bitcoin price index.
In late January, Tesla reported its first full-year revenue, stating that the company gained $721 million in 2020 after an $862 mil loss in 2019.