Tesla, under the leadership of Elon Musk, appears to have made a substantial profit exceeding $230 million from its investment in Bitcoin. This windfall comes in the wake of the launch of Bitcoin spot exchange-traded funds (ETFs) on January 11th. The revelation about Tesla’s Bitcoin earnings emerged as on-chain investigators delved into the digital wallets of both Tesla and SpaceX, another venture spearheaded by Musk. Their analysis uncovered a combined Bitcoin value exceeding $1 billion.
According to data provided by Arkham Intelligence, Tesla’s Bitcoin holdings are presently valued at $760 million, representing a remarkable gain of over $230 million within a span of just three months. This surge in value can be attributed, at least in part, to the heightened buying activity sparked by the introduction of spot Bitcoin ETFs based in the United States.
Bitcoin’s price, which hovered around $45,000 at the time of the ETF launch, experienced a brief dip to the $39,000 range before swiftly rebounding. By mid-February, it had surged past the $50,000 mark. The price skyrocketed further, reaching as high as $69,000 on Coinbase earlier this week—a level not seen since November 2021.
Initial estimates made in January by Bitcoin Treasuries suggested that Tesla held nearly 9,720 BTC. However, Arkham analysts have since revised this figure upward to 11,509 BTC. This adjustment reflects an increase of 1,789 BTC from Tesla’s previously reported holdings.
The significance of these developments lies in the financial gains achieved by both Tesla and SpaceX through their investments in Bitcoin. In February 2021, Tesla made a bold move by investing $1.5 billion in Bitcoin, signaling its belief in the long-term potential of the cryptocurrency. While initially considering accepting Bitcoin as payment for car purchases, Tesla later postponed this initiative.
Despite selling a portion of its Bitcoin holdings—10% in March 2021 and a further 75% in the second quarter of 2022—Tesla’s remaining investment has proven to be highly profitable. The value of Tesla’s current Bitcoin holdings has soared, resulting in a substantial profit of $455 million.
Similarly, SpaceX has also reaped significant profits from its Bitcoin investments, totaling over $165 million. With the introduction of Bitcoin spot ETFs in January, both Tesla and SpaceX benefited from the surge in Bitcoin prices, which nearly doubled from around $35,000 in November. As a result, SpaceX’s Bitcoin investments have bounced back, generating a profit of $132 million.
These profits underscore the potential financial gains associated with investing in cryptocurrencies like Bitcoin. Despite market fluctuations and occasional divestments, both Tesla and SpaceX have demonstrated the profitability of their strategic investments in Bitcoin, further solidifying the cryptocurrency’s position as a lucrative asset in the financial landscape.