CNBC: Tesla Investments in Bitcoin Brought About $ 1 Billion in Profits

Tesla’s investment in bitcoin on paper has already gained $ 1 billion in profit, writes CBC, citing analytical company Wedbush Securities. The observed trend suggests that Tesla’s profit from investing in bitcoin may be higher than from all sales of electric vehicles in 2020, analysts say.

Earlier this month, Tesla announced a $ 1.5 billion purchase of cryptocurrency to “diversify and increase revenue from cash reserves.” It is assumed that the purchase was made in January, but the company does not specify exactly when and at what price it happened. Whether Tesla has begun to take profits is also unknown. Wedbush Securities analysts do not disclose the principles of their calculations. Bitcoin traded around $ 35,000 on January 31, and yesterday it surpassed $ 58,000 for the first time. Taking into account the 65% rise, Tesla’s investment in Bitcoin increased by about $ 1 billion.

 

“Buying bitcoin is a side activity for Tesla. However, the initial investment was clearly a success. We expect other public companies to join this trend over the next 12-18 months, ”writes Wedbush Securities.

 

At the same time, analysts admit that many companies will hesitate to buy bitcoin due to the regulatory uncertainty surrounding such investments: “We expect that less than 5% of public companies will follow this scenario until the regulatory tasks around the cryptocurrency market, which are clearly entering the masses, are resolved. in 2021 “.

The same opinion is shared by the mayor of Miami, Francis Suarez, who planned to build a large cryptocurrency center on the basis of the city.

 

“This is a transformation and a transition to the mainstream. I think there are 2-3 more mega-events awaiting us, ”he said.

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