American electric car giant Tesla has seen massive gains with its Bitcoin ( BTC ), which has reportedly grossed up to $ 1 billion in profits, according to a new report.
An analyst from Wedbush Securities, a private investment firm in the United States, calculated that Tesla had made "about $ 1 billion" as a result of his $ 1.5 billion Bitcoin investment . Daniel Ives estimated Tesla's Bitcoin profits on Saturday in a note to investors, CNBC reports .
In the middle of Bitcoin parabolic surge to become a $ 1 trillion asset , Ives said , " Tesla is on track to make more profit from its Bitcoin investments than profits from selling its electric vehicles overall 2020 . "
Ives noted that Tesla's move is likely to affect other state-owned companies. " Although the Bitcoin investment is an exA parallel position for Tesla, this is clearly a good initial investment and a trend that we foresee could have a ripple impact for other public companies over the next 12-18 months, " he wrote. However, Ives expects a small portion of the market to follow the trend due to regulatory uncertainty concerns:
Tesla has officially announced its investment $ 1.5 billion in Bitcoin as part of its filing with the United States Securities and Exchange Commission on February 8. It is still unclear how many Bitcoin Tesla bought and at what price, as the company didn 't did not
Like Bitcoin exchanged between 29,000 andAround $ 37,000 in the month of January, an investment of $ 1.5 billion could mean Tesla has between 40,000 and 51,000 BTC. At the time of writing, Bitcoin is trading at $ 56,239, up around 15% over the past seven days, according to data of the Cointelegraph Bitcoin price index.
At the end of January, Tesla declared its first annual profit, indicating that the company made $ 721 million in 2020 after losing $ 862 million in 2019.