Tesla has already seen enormous gains from its recent Bitcoin investment according to analyst data.
According to an analyst at Wedbush Securities, Tesla’s investment is looking at approximately $1 billion USD since it plugged $1.5 billion USD of its balance sheets into cryptocurrency.
Could Tesla’s main profit come from cryptocurrency?
Tesla is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020. While the Bitcoin investment is a sideshow 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 continued to express that Tesla’s investment might influence not only retail investors but also institutional firms. With the influence that Musk seems to have on the market, it’s not unlikely that we’ll see adoption coming from other companies within the next few years. However, Ives predicts that regulation will be a bigger roadblock before more companies look to add Bitcoin to their balance sheets. He did note though, that mainstream adoption of the crypto market is gaining more traction and will see more attention this year:
“We still expect less than 5% of public companies will head down this route until more regulatory goalposts are put in place around the crypto market, which is clearly starting to gain more mainstream adoption in 2021.”
While Tesla announced its $1.5 billion USD Bitcoin investment filed to the U.S. Securities and Exchange Commission, it’s not exactly confirmed how much Bitcoin that was and at what price. The number remains approximate at present, but it is likely somewhere between 40,000 and 51,000 Bitcoin tokens.