Tesla and Elon Musk’s winning bet

In total, Tesla’s colossal investment in Bitcoin would have brought in no less than $ 1 billion for the firm owned by Elon Musk.

It’s no longer a secret: Elon Musk is very interested in cryptocurrencies. Despite the warnings, the American billionaire had made the bet to bet on the digital currency with a massive investment of more than a billion dollars in Tesla in February.

Elon Musk had announced it while offering the possibility for customers of the electric vehicle manufacturer to pay for their purchases in Bitcoin, before withdrawing this means of payment following concerns about the impact of cryptocurrency mining on the environment.

But as the end of the year approaches, the question arises. Was this risky bet a winner? In a report on Tesla’s third quarter 2021 results, it is learned that the company suffered a quarter-over-quarter depreciation of $ 51 million in Bitcoin. The firm therefore seems to have lost money with the cryptocurrency. Except that if we take a closer look, the reality is quite different since the start of the year and the price variations of Bitcoin.

In fact, the firm owned by Elon Musk would have realized a capital gain of more than a billion dollars since the beginning of 2021, according to the report of the Securities and Exchange Commission (SEC) for the first quarter. At the end of it, Tesla actually held no less than $ 2.48 billion in cryptoassets, or about 42,000 Bitcoins when it was valued at $ 59,000 per unit.

The company then sold part of its Bitcoins (10%) at the end of April in order to test the liquidity of the market, before keeping its cryptoassets. Today, the total amount of Bitcoin held by Tesla was estimated to be nearly $ 2.67 billion by the time the cryptocurrency hit its all-time high of over $ 66,000 per unit. Ultimately, the firm would have gone from 1.33 billion dollars invested to 2.67 billion recently, or more than a billion dollars in profit in total. In short, a winning bet.

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