Bitcoin Beats Tesla Stock for the First Time Since 2019
BITmarkets Team
Apr 24, 2024
Over the last five years, Bitcoin's value has surpassed Tesla's (TSLA) stock in terms of percentage gains.
Additionally, the electric vehicle company missed out on a potential $1.27 billion profit by selling a significant portion of its Bitcoin holdings in 2022.
According to TradingView, Bitcoin's price surged by more than 1,180% over the past five years, while Tesla's stock price increased by over 806%.
Focusing on shorter time frames, Bitcoin’s performance has exceeded that of TSLA over the last year. Bitcoin saw a 139% increase, while Tesla's stock declined by over 11% during the same period.
Year-to-date figures show Bitcoin up by 49%, whereas Tesla’s stock has dropped 42%.
This remarkable performance has positioned Bitcoin as the world’s ninth-largest asset, boasting a market capitalization of $1.3 trillion, surpassing major companies like Meta Platforms, Berkshire Hathway, Visa, and JPMorgan Chase.
In contrast, Tesla ranks as the world’s 21st largest asset with a market capitalization of $455 billion, as reported by Companiesmarketcap.
Tesla was one of the initial publicly traded companies to buy Bitcoin, purchasing over $1.5 billion at around the $36,000 mark in February 2021.
Despite this early investment, Tesla liquidated about 10% of its Bitcoin holdings in March 2021 and sold roughly 75% of its reserves in the second quarter of 2022.
If Tesla had retained its Bitcoin, it would have realized a profit exceeding $1.27 billion, an 84% increase over its initial investment, based on current prices.
Tesla's remaining Bitcoin stash, totaling 11,509 BTC, is valued at over $766 million and is held with Coinbase Prime Custody, as per Arkham Intelligence.
Andrey Stoychev, head of prime brokerage at Nexo, attributes Bitcoin's 60% price increase this year largely to the approval of ten U.S. spot Bitcoin exchange-traded funds (ETFs).
He conveyed to Cointelegraph:
“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.”
Collectively, these ten Bitcoin ETFs hold over 835,000 BTC, with an estimated worth of over $55.1 billion, according to data from Dune.
Sources:
https://cointelegraph.com/news/bitcoin-outpeforms-tesla-stock-first-time-since-2019
https://www.tradingview.com/chart/3Z94myyP/?symbol=BITSTAMP%3ABTCUSD
https://companiesmarketcap.com/assets-by-market-cap/
https://platform.arkhamintelligence.com/explorer/entity/tesla
