US electric car giant Tesla has made huge profits from its investment in Bitcoin (BTC), as it is alleged to have made profits of up to $ 1 billion, according to a new report.

An analyst at Wedbush Securities, a US-based private equity firm, estimates that Tesla has made “about $ 1 billion” after investing $ 1.5 billion in bitcoin. CNBC reported that Daniel Ives estimated Tesla’s bitcoin profits in a letter to an investor on Saturday.

With the bitcoin parabola and converting it into a trillion dollar asset, according to Ives, “Tesla is on the right track to make more money from its bitcoin investment than from the sale of its electric cars during 2020.”

Ives indicated that Tesla’s move is likely to affect other public companies. He wrote: “While investing in Bitcoin is a secondary concern for Tesla, it was clearly a good initial investment, and this trend, as we expect, could have a ripple effect on other public companies over the next 12-18 months.” However, Ives expects that only a small portion of the market will follow this trend due to concerns about regulatory uncertainty:

“We still expect less than 5% of public companies to go this route until more targeted regulations are established in the crypto market, which will clearly become more prevalent in 2021.”
Tesla officially announced its $ 1.5 billion investment as part of its filing with the US Securities and Exchange Commission on February 8th. It remains unclear how many bitcoins Tesla has purchased and at what price, as the company has not disclosed this information in the archive. …

Since Bitcoin traded between $ 29,000 and $ 37,000 in January, an investment of $ 1.5 billion could mean that Tesla will receive anywhere from 40,000 to 5,000 BTC. At the time of writing, Bitcoin has been trading at $ 56,239, up about 15% over the past seven days, according to Cointelegraph’s Bitcoin price index.

At the end of January, Tesla announced its first results for the year, saying that the company made $ 721 million in 2020 after losing $ 862 million in 2019.

Source: CoinTelegraph

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