u.today
Even after about three years since it placed its bet on Bitcoin (BTC), Elon Musk’s electric vehicle manufacturer, Tesla, is still reaping the benefits of this bet. In an unsurprising twist, the company’s Bitcoin stash has reclaimed the $1 billion valuation milestone, according to data insights from Arkham Intelligence. This portfolio boost helps compensate for the previous sell-offs the firm has made recently.
Tesla and Bitcoin boom
Arkham Intelligence data shows that Tesla still HODLs 11,509 Bitcoin units on the Coinbase Prime platform. This holding is equivalent to exactly $1,003,680,252.55 at a price of $87,206. In a few days, the portfolio has grown by $96.77 million, setting it back into unrealized profit.
JUST IN: TESLA NOW HOLDS $1 BILLION BTC pic.twitter.com/oSjU8yn82T
— Arkham (@ArkhamIntel) November 11, 2024
Tesla entered its Bitcoin position in Q1, 2021, when it bought $1.5 billion worth of the coin. In the succeeding years, it made a few sales that pushed the portfolio below the $1 billion benchmark. As reported earlier by U.Today, Elon Musk confirmed that the firm has not sold its remaining Bitcoin stash.
This has turned out to be a good call, as the firm is now on the receiving end of the ongoing bull market rally. As of writing time, Bitcoin traded for $88,902.18, up 9.56% in the past 24 hours after breaching multiple all-time highs.
Motivation to buy more?
The performance of Bitcoin makes it easier for institutional investors to FOMO. Notably, amid the ongoing market rally, MicroStrategy acquired an additional 27,200 BTC units to increase its overall Bitcoin stash.
Today, more institutional investment firms are buying more Bitcoin. Given this trend, it remains unknown whether Tesla will make an additional move to buy more of the coin. Rather than buying BTC directly from the spot market, investors are increasingly gaining exposure through spot Bitcoin ETF products.
Firms like Susquehanna Investment Group (SIG) and BNP Paribas are also exposed to BTC.