Bitcoin Outpaces Tesla in Long-Term Gains; Surge Attributed to ETF Approvals
Summary:
In the past five years, Bitcoin's price has outperformed Tesla's stock in terms of growth percentage. Tesla also missed out on a significant potential profit of $1.27 billion by selling a large portion of its BTC holdings in 2022. Over the last year, Bitcoin's value has increased by 139%, while Tesla's stock fell over 11%. Currently, Bitcoin stands as the world's 9th-largest asset with a $1.3 trillion market capitalization, while Tesla ranks 21st. The increase in Bitcoin's price this year is attributed mainly to the approval of ten US Bitcoin exchange-traded funds. Tesla still holds 11,509 BTC valued at over $766 million with Coinbase Prime Custody.
The price of Bitcoin (BTC) has now risen higher in percentage terms over the last five years than that of Tesla's (TSLA) stock. Additionally, Tesla missed the opportunity to earn an enormous profit of $1.27 billion in 2022 by selling a significant portion of its BTC possession. When compared over a five-year span, Bitcoin's price has surged by 1,180%, while Tesla’s stock has shot up by 806%, based on data from TradingView.
Viewing a closer timeframe, specifically during the last year, Bitcoin has outperformed Tesla. In the last 12-month period, Bitcoin increased by 139%, while Tesla saw a decline of over 11%. To date this year, BTC has climbed 49% while Tesla’s stock price dipped by 42%.
This year's dazzling performance by BTC has made it the world’s 9th-largest asset with a market capitalization of $1.3 trillion—surpassing giants like Meta Platforms, Berkshire Hathway, Visa, and JPMorgan Chase. In contrast, Tesla ranks as the world's 21st largest asset, boasting a market capitalization of $455 billion, as per Companiesmarketcap.
Tesla made headlines in February 2021 when it became one of the first publicly traded firms to invest in Bitcoin, purchasing over $1.5 billion worth of BTC at around $36,000. However, approximately 10% of its holdings were sold in March 2021, followed by an estimated 75% of its Bitcoin reserve sale in the second quarter of 2022. If Tesla hadn't sold, it could have made a profit of over $1.27 billion, a stunning 84% increase on its initial investment at today's prices.
Tesla remains in possession of 11,509 BTC, currently valued at over $766 million, held with Coinbase Prime Custody, according to Arkham Intelligence.
The boost in Bitcoin's price this year, up 60%, is predominantly attributed to the approval of ten US spot Bitcoin Exchange-Traded Funds (ETFs), says Andrey Stoychev, head of prime brokerage at Nexo. The cumulative on-chain holdings of these ten Bitcoin ETFs amount to more than 835,000 BTC, worth over $55.1 billion, as measured by Dune.
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Published At
4/23/2024 6:06:47 PM
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