Tesla, ‘invested $ 1 billion in Bitcoin’

Daniel Ives, an analyst at investment firm Wedbush Secutities in the United States, said Tesla made about $ 1 billion from its $ 1.5 billion Bitcoin investment.

According to a CNBC report, Daniel Ives said in a note he shared on Saturday that “Tesla is on track to make more profit from all electric car sales in 2020 with this investment.”

The company, run by Elon Musk, told the U.S. Securities and Exchange Commission on Feb. 8 that it received $ 1.5 billion in Bitcoin in January.

The company also announced that it can accept payments in Bitcoin.

When Musk put Bitcoin in a Twitter message with more than 47 million followers before this report, the value of cryptocurrency suddenly increased by 20 percent.

Elon Musk later removed this hashtag.

Tesla did not say at what price it bought Bitcoin in January.

The value of Bitcoin has increased by 94 percent this year

Bitcoin, whose market value exceeded $ 1 trillion for the first time last week, has gained 94 percent since January.

Daniel Ives did not explain in the newsletter how he calculated Tesla’s profit. However, according to CoinDesk, the highest value of Bitcoin during the day on January 31 was $ 34,793.

Bitcoin rose to $ 57,487 on February 20 when Ives shared the record. This means an increase of 65 percent. Between these dates, Tesla’s $ 1.5 billion investment is estimated to bring in $ 975 million. Given that the current value of Bitcoin is $ 58,332, the profit exceeds $ 1 billion.

“While Bitcoin is a one-sided show for Tesla, I’m sure it will be a good start-up investment for the company and will have an impact on other mass-traded companies over the next 12-18 months,” Ives said.

The recent rise in the price of Bitcoin is largely due to the decision of Tesla and some other large companies to accept payments in this currency.

Blockrock, the world’s largest fund manager, said it was looking for ways to use Bitcoin.

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