An analyst at Wedbush Securities, a private investment company in the United States, has estimated that in the wake of its $1.5 billion Bitcoin investment, Tesla made “about $1 billion.” CNBC notes that on Saturday, Daniel Ives projected Tesla’s Bitcoin income in an investor note.
Ives said, “Tesla is on a path to make more from its Bitcoin investments than profits from the sale of its electric vehicles in all of 2020,” despite Bitcoin’s parabolic surge to become a $1 trillion asset.
Ives indicated that other public corporations are likely to be impacted by Tesla’s move. “While the Bitcoin investment is a side show for Tesla. It’s clearly been a good initial investment and a trend. We expect could have a ripple impact for other public companies over the next 12 to 18 months,” he wrote. However, due to regulatory uncertainty concerns, Ives expects only a small part of the industry to follow the trend:
“We still expect less than 5% of public companies will head down. This route until more regulatory goal posts are put in place around the crypto market. Which is clearly starting to gain more mainstream adoption in 2021.”
Tesla revealed Bitcoin investment
As part of its filing with the U.S, Tesla formally revealed its $1.5 billion Bitcoin investment. On Feb. 8, the Securities and Exchange Commission. It still remains uncertain how much Bitcoin Tesla bought. And at what price, as this information was not revealed in the filing by the company.
As Bitcoin traded in the month of January between about $29,000 and $37,000, an investment of $1.5 billion could mean. That Tesla holds between 40,000 and 51,000 BTC everywhere. Bitcoin is trading at $56,239 at the time of writing, up about 15 percent over the past seven days. According to Cointelegraph Bitcoin price index results.
Tesla announced its first full-year profit in late January. Reporting that the firm raised $721 million in 2020 after a loss of $862 million in 2019.