Over the last five years, Bitcoin’s (BTC) price growth has surpassed Tesla’s (TSLA) stock increase in terms of percentage points. If Tesla had held onto their Bitcoins instead of selling them in 2022, they could have earned an additional $1.27 billion in profit.
BTC overtakes TSLA in long-term gains
In the last five years, Bitcoin’s value has increased by more than tenfold, amounting to a 1,180% gain based on TradingView’s figures. On the other hand, Tesla’s stock price growth was also significant, reaching approximately double in value, equating to around an 806% increase.
In the shorter term, Bitcoins returns have surpassed Tesla’s. Specifically, Bitcoin increased by 139% over the past year compared to Tesla’s decrease of 11%. Moreover, Bitcoin has gained 49% year-to-date while Tesla’s stock price has dropped by 42%.
This year has been exceptional for Bitcoin, pushing its market value to an impressive $1.3 trillion, making it the ninth most valuable asset globally. Notably, this surpasses the market capitalizations of Meta Platforms, Berkshire Hathaway, Visa, and JPMorgan Chase.
According to Companiesmarketcap, Tesla ranks as the 21st largest company globally in terms of market value, which amounts to $455 billion.
In February 2021, Tesla became one of the pioneering publicly-traded corporations to purchase Bitcoin. The company spent approximately $1.5 billion on Bitcoin when its value was around $36,000 per coin.
In March 2021, Tesla disposed of around 10%, while in the second quarter of 2022, it sold off around 75% of its Bitcoin holdings.
At present market prices, Tesla would have earned a profit of over $1.27 billion if they hadn’t sold their initial investment, representing an impressive 84% increase.
According to Arkham Intelligence’s latest report, Tesla now manages approximately 11,509 Bitcoins valued at around $766 million through Coinbase Prime Custody.
Bitcoin ETFs are the main reason why BTC is winning
Andrey Stoychev, Nexo’s prime brokerage head, believes that the approval of ten Bitcoin ETFs in the US is the primary cause for Bitcoin’s price increase of approximately 60% this year, as stated in an interview with CryptoMoon.
“U.S. spot Bitcoin ETFs’ role in elevating Bitcoin to a genuine asset class has been invaluable, with pleasing trading volumes and capital flows since launch.”
Approximately 835,000 Bitcoins, valued at more than $55.1 billion, have been accumulated in the collective on-chain holdings of the ten Bitcoin ETFs, as reported by Dune.
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2024-04-23 18:20