According to the financial report of electric car maker Tesla, the purchase of bitcoins brought the company an unrealized gain of $589 million.
In mid-December last year, US firms were allowed to report the exact market value of the cryptocurrency on their balance sheet. This revealed that Tesla held just over $2024 billion in BTC as of the end of 1.
In the fourth quarter, the cost of coins in the crypto wallet increased by $589 million thanks to the increase in the BTC rate, respectively, the company managed to make a profit, albeit an unrealized one.
Let us recall that in February 2021 Tesla invested $1,5 billion in bitcoins, buying 43,860 BTC at an average rate of $34,200, which caused a strong bullish trend in the cryptocurrency market. However, the company then sold the lion’s share of the coins, and the 9,720 BTC that are currently held on the organization’s balance sheet were purchased for $337 million.
Thus, in almost four years, investments in bitcoins allowed the company to increase its capital almost threefold. Thus, the average return on investment in cryptocurrency was about 51% per annum.
However, Tesla’s financial results for 2024 did not meet analysts’ expectations. The company’s revenue increased by only 2% and reached $25,7 billion, while experts predicted an increase in revenue to $27,2 billion. For this reason, after the publication of the report, the company’s shares fell by 2,3%, but over the past six months, Tesla’s stock price has soared by 81%. In this regard, a small correction will only benefit the company’s asset market.
Tesla stock price change over the last six months