Holding Bitcoin has already generated $1 billion in revenue for Tesla, thanks to Elon Musk

Tesla’s Bitcoin hoard is now valued at $1 billion more since Elon Musk accepted the acquisition in February.

As Bitcoin’s price rose in October to over $58,000 on October 14, Tesla’s daring push into the market has paid off in 2021.

According to the online tracking portal Bitcoin Treasuries, Tesla now possesses around 43,200 BTC, worth approximately $2.5 billion at today’s rates. In February, Elon Musk’s business disclosed that it had contributed $1.5 billion in Bitcoin to its balance sheet; thus, this represents a 65 per cent or $1 billion increase in the price paid by the automaker since that time.

Tesla reportedly sold around 46,000 BTC in the second quarter at an average price of $50,000 per token. The corporation reported Holding Bitcoin has already generated $1 billion in revenue for Tesla, thanks to Elon Musk$128 million in profits from its Btc sale in its Q2 financial report.

Tesla achieved its first billion dollars in profit from the sale of automobiles in the second quarter

As Bitcoin’s price has recently risen, Tesla’s net gains from crypto assets have already surpassed the company’s revenue for Q2.

Tesla recorded a net profit of $1.14 billion for the second quarter, the first time the company has made a profit of $1 billion. Tesla generated $11.96 billion in sales mainly from automobiles — or $10.21 billion in profit. Revenues of regulatory credits generated the rest of $354 million in revenue.

In the third quarter, Tesla delivered 241,300 electric vehicles, up from 201,250 in the previous quarter, announced on October 1. Expectations are increasing for the blockbuster results to be revealed just after the market closes on October 19, given Tesla’s Bitcoin profits.

According to Piper Sandler expert Alexander Potter, “we believe Q3 will be TSLA’s greatest quarter ever.”

What about the rest of the business world?

This case study shows how other corporations may use Bitcoin to restore a proportion of their cash reserves. Tesla’s Bitcoin strategy has been highly effective so far.

However, some businesses that made Bitcoin investments before Tesla have realized even more significant profits.

MicroStrategy, a business analytics firm, bought over $3.15 billion worth of Btc throughout many purchases. The company’s net Bitcoin earnings are close to $6.3 billion, nearly tripling its investment, dating back to August 11, 2020.

Square, the payment processing company founded by Jack Dorsey, has made a tidy profit on its $220 million investment in Bitcoin, now valued at over $442 million.

A crypto mining company headquartered in Canada has seen the value of its $39.3 million Bitcoin acquisition soar by over 600 per cent that it is now worth about $250 million. In June, the firm said that it expects to store 5,000 BTC by the year 2022.

Source: Cointelegraph News

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