On November 12, 2024, Tesla's strategic investment in Bitcoin has proven lucrative, with the company now holding over $1 billion worth of the cryptocurrency. The automaker currently possesses 11,509 BTC, which has appreciated significantly as Bitcoin reached an all-time high of $89,560.
Tesla initially announced its $1.5 billion Bitcoin purchase in February 2021, aiming to diversify and maximize cash returns. Since the start of 2024, the value of Tesla's Bitcoin holdings has more than doubled, resulting in a profit of $495 million by early November.
The surge in value is attributed to rising crypto prices rather than new acquisitions. Bitcoin's market capitalization has soared to $1.75 trillion, surpassing silver in global rankings. This bullish trend follows heightened institutional interest and optimism surrounding U.S. spot Bitcoin exchange-traded funds.
Following the re-election of pro-crypto President Donald Trump, Bitcoin has increased by over 40% in the past month, currently trading at $88,768.81, up more than 9% in the last 24 hours. Tesla's stock also experienced an 8% rise in after-hours trading, reaching $350.
Since Trump's victory, Tesla's market cap has surged nearly 39%, boosting CEO Elon Musk's wealth to an estimated $320 billion. Although Tesla moved its Bitcoin holdings last month, analysts believe this was a wallet rotation rather than a sell-off. Arkham Intelligence reported that Tesla's Bitcoin remained inactive for nearly two years until mid-October.
In contrast, MicroStrategy continues to aggressively expand its Bitcoin reserves under CEO Michael Saylor, recently acquiring an additional 27,200 BTC, bringing its total to 279,420 BTC, valued at over $24 billion.