Wedbush Securities, a private investment firm has estimated that electric car makers, Tesla would make more profit from its recent $1.5 million Bitcoin investment than from selling cars. The investment firm said this in a note published on Saturday.
Tesla after announcing that it bought $1.5 billion worth of Bitcoin, the number one crypto price surged like a rocket. Hours after the news, Bitcoin price went up immediately by 8.5 percent.
Bitcoin continued to rise afterward hitting a new All-Time-high price 12 days after at $57,000. The market cap of BTC is now worth more than $1 trillion.
Tesla earns $1 billion profit from Bitcoin investment
Dan Ives and Strecker Backe, two Wedbush analysts have estimated that Tesla has already seen $1 billion of profit from its Bitcoin investment; compare that to the $721 million in profit Tesla reported for its fiscal year 2020.
Similarly, Tesla CEO, Elon Musk helped Bitcoin recently tweeting about it to his 47.5 million followers.
Previously, when he changed his Twitter bio to “#Bitcoin#”, the price of Bitcoin rose by 13 percent within an hour. Musk has defended the coin against critics, too. When gold bug and Bitcoin critic, Peter Schiff, who runs Euro Pacific Bank, tweeted that gold was superior to crypto, Musk disagreed, tweeting, “An email saying you have gold is not the same as having gold. You might as well have crypto.”
Bitcoin $1 trillion market value after price surge
Bitcoin’s recent price surge pushed the largest cryptocurrency past $1 trillion in market capitalization, a whole new threshold. The price of Bitcoin has now gained about 360 percent over the past six months. Before the recent surge, the digital asset has never traded above $20,000.
“In many ways, $1 trillion marks an interesting focal point in which bitcoin goes from a magic internet money meme into a Wall Street, institutionally recognized and investable asset,” said Andrew Tu, an executive at quantitative trading firm Efficient Frontier.
The move has been fueled in part by increased adoption of bitcoin by major investors and companies. The oldest bank in the United States, the Bank of New York Mellon, announced earlier this month that it was moving into the space.