If You Had Invested $1,000 In Bitcoin When Tesla Bought The Crypto, Here’s How Much You Would Have Now

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The leading cryptocurrency had an exciting year in 2021 with several big news items which also propelled the sector forward.

One of the big stories in 2021 was major corporations adding Bitcoin BTC/USD to their balance sheets, a move that may have been one of the main catalysts to send the price to all-time highs.

What happened: One of the largest companies in the world, Tesla Inc TSLA, announced on February 8, 2021 that it had purchased $1.5 billion of the cryptocurrency. The purchase was made in the first quarter of January.

The news that Tesla had purchased Bitcoin led to an immediate surge in the price of Bitcoin and experts who saw it as a key catalyst and support for the future of cryptocurrency.

Ark Invest CEO Cathie Wood previously said companies that added Bitcoin to their balance sheets were one of the reasons for her huge price target for Bitcoin going forward.

Tesla later announced that it sold $272 million of its Bitcoin in the first quarter, which it said had a positive impact on its quarterly profitability with $128 million in revenue from Bitcoin.

In fiscal 2022, Tesla announced the sale of 75% of its Bitcoin in the second quarter, bringing $936 million in cash to its balance sheet.

Last quarter, Tesla posted $218 million worth of digital assets on its balance sheet. This number could include both Bitcoin and Dogecoin DOGE/USD, a cryptocurrency that can be used to purchase goods from Teslas online store.

Tesla has previously said it could increase or decrease its digital assets at any time, depending on business needs and the company’s vision in the cryptocurrency market.

Here’s a look at Bitcoin’s performance since buying Tesla.

Related Link: Did Tesla Make Money From Its $1.5 Billion Bitcoin Purchase?

Invest $1,000 in Bitcoin: The major cryptocurrency fell in 2022 thanks to several macro issues and cryptocurrency events such as the FTX bankruptcy, which rocked the industry.

Bitcoin reached a high of $46,203.93 on February 8, 2021, after the disclosure of the purchase of Teslas. The cryptocurrency hit a high of $39,621.84 the previous day.

A $1,000 investment in Bitcoin at its February 8, 2021 high could have bought 0.0216 BTC. The $1,000 investment would be worth $457.06 today based on a Bitcoin price of $21,160.08 at the time of writing.

That’s down 54.3% since the Tesla purchase was disclosed.

An investor who invested in the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500 index, would be up 2.4% over the same period.

Bitcoin reached an all-time high of around $68,789.63 in November 2021. The $1,000 investment in Bitcoin was worth $1,485.86 at its peak, up 48.6%.

Read next: Here’s what Bitcoin’s crash could mean for Tesla

Photo: Created with an image from Dunkon flickr.

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