The American genius Elon Musk, the head of Tesla and the richest person in the world, managed to reap huge profits from investing in Bitcoin.
According to Business Insider, the investment of Tesla Corporation, which Musk executive heads, of $ 1.5 billion in Bitcoin not only made headlines but also made the company more profitable than it made from car sales last year.
According to a calculation based on the price of $ 55,000 that Bitcoin reached on Friday, Tesla’s investments in Bitcoin, which were supposed to have been placed on January 31 last, achieved after only about 20 days a profit $ 930 million.
“This means a profit that is nearly 30% higher than the $ 721 million profit Tesla made from electric vehicle sales in 2020,” the report said.
It should be noted that the value of Bitcoin subsequently jumped to over $ 57,000, which means greater profits for Tesla.
We must also clarify that the year 2020 was the first for Tesla to achieve annual profits in the first place since its inception in 2003. It seems that its “business model” business model is based on making profits after a period of inception.
Also, it must be clarified that the share price of Tesla company in itself jumped dramatically during 2020, which directly caused an increase in the evaluation of Elon Musk’s net worth, placing him at the top of the list of the richest people on the planet.
Although Bitcoin’s rally has been a source of controversy across the investment community, it is 546% year-on-year gains. CoinDesk data may create a bubble for an asset with no value; Musk has openly regretted the late investment in the cryptocurrency.
Tesla’s investment in Bitcoin was revealed on February 8, when it said it had purchased $ 1.5 billion worth of Bitcoin in January 2021.
The company also announced that it plans to start accepting cryptocurrency as a form of payment in the near future.