Tesla’s strategic bet on bitcoin is proving lucrative, with the electric vehicle maker now holding the world’s largest cryptocurrency valued at over $1 billion. The company currently owns 11,509 BTC, whose value has surged as bitcoin reached a record high of $89,560, according to blockchain analytics firm Arkham Intelligence.
Tesla’s Bitcoin Investment Reaches Record Value
In February 2021, Tesla announced it had purchased $1.5 billion in bitcoin to diversify and maximize returns on its cash holdings. Since then, the value of this investment has more than doubled, generating approximately $495 million in gains for Tesla. This increase is primarily due to the rising price of bitcoin rather than new acquisitions.
Bitcoin’s Rising Value and Market Cap Exceeding $1.75 Trillion
Bitcoin has reached a market cap of $1.75 trillion, surpassing silver in the global asset rankings, driven by high market enthusiasm. This surge is supported by expectations of the approval of U.S. spot bitcoin ETFs and the positive outlook following the re-election of pro-crypto President Donald Trump.
Tesla’s Stock Growth Mirrors Bitcoin’s Success
The crypto market’s positive momentum has also boosted Tesla’s stock, with shares rising 8% in after-hours trading to $350. At the same time, Tesla’s market cap has increased by nearly 39%, raising Elon Musk’s personal wealth to an estimated $320 billion.
Tesla’s Bitcoin Transfers Raise Strategy Questions
In October, Tesla moved its bitcoin holdings, which analysts believe was a wallet rotation rather than a sale. Arkham Intelligence found that this shift involved the transfer of approximately $765 million worth of bitcoin to seven new wallets, which Tesla continues to control.
MicroStrategy Doubles Down on Bitcoin More Aggressively Than Tesla
While Tesla is primarily protecting its bitcoin holdings, MicroStrategy, led by CEO Michael Saylor, continues to aggressively expand its reserves. MicroStrategy recently acquired an additional 27,200 BTC, now holding 279,420 BTC valued at over $24 billion, underscoring their conviction that bitcoin is a key long-term asset.
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