Bitcoin (BTC) held by Tesla is still worth 33% less than its purchase price in 2021according to the latest data.
Two years after Elon Musk’s firm added BTC to its balance sheet, most of the profits continue to elude the automaker.
Tesla and Bitcoin: from 1,500 to 225 million dollars
Bitcoin and Tesla have proven to be an explosive combination ever since Musk announced he would buy $1.5 billion worth of BTC.
The move in February 2021 came as the BTC/USD pair was on track for its first all-time high of the year, which it hit in April, peaking at $58,000.
Tesla’s purchase price was around $34,700 at the time.according to data from the Bitcoin Treasuries tracking website.
After selling 10% of its shares in March of that year, Tesla became a weight hodler until, in July 2022, it made a surprise announcement that it was divesting 75% of its remaining coins.
That was done at a loss, as at the time, the BTC/USD pair was trading near $23,000. The sale occurred during the second quarter of 2022 at about $29,000 per coin.
Taking the hit seemed more appealing to Musk, who claimed that the logic behind the sale was not a direct comment on Bitcoin as an investment.
Since then, Tesla has owned 9,720 BTC, with subsequent price action still denying the company any investment gains. According to Bitcoin Treasuries, Tesla still has 33% of its reserve remaining as of February 2023, worth $225 million.
TSLA and BTC rise in tandem
Previously, Cointelegraph reported on the relationship between the Bitcoin spot price and Tesla stock, both with a broad revival in early 2023.
As of the anniversary of the Bitcoin purchase, TSLA is up 66% year-to-date, outpacing Bitcoin’s gains of just under 40%, as confirmed by data from Cointelegraph Markets Pro and TradingView.
However, The rally has failed to capture the imagination of mainstream media, which this month chose to highlight Tesla’s net losses in BTC in 2022, which in US dollar terms amounted to $140 million.
Meanwhile, Musk has become arguably better known in the context of other cryptocurrencies, notably Dogecoin (DOGE), which he has given considerable publicity to on social media and elsewhere since 2021.
It recently revealed that the payments would come to Twitter, which it bought last year, and that these could, at some point, include cryptocurrency.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.