Elon Musk approved the acquisition of Tesla’s Bitcoin hoard in February, and it is now worth $1 billion more. According to Bitcoin Treasuries, Tesla now possesses around 43,200 BTC, which is worth almost $2.5 billion at today’s rates. This is almost $1 billion more than the carmaker paid in February when Elon Musk’s firm said it had added $1.5 billion in Bitcoin to its financial sheet.
The firm said in its Q2 financial report that it had made $128 million in profit from its Bitcoin (BTC) sale. Tesla’s net gains from its crypto assets were equal to its income in Q2 following the recent Bitcoin price recovery.
Tesla’s net profit for the second quarter was $1.14 billion, the first time it had ever surpassed the $1-billion barrier. The profit was part of the total revenue of $11.96 billion, with roughly $10.21 billion coming from automobile sales. The remaining $354 million was raised through regulatory credit sales.
Tesla said on Oct. 1 that it delivered 241,300 electric vehicles in the third quarter, up from 201,250 in the previous quarter. Expectations are high for blockbuster results to be disclosed after the market closes on Oct. 19, when combined with Tesla’s Bitcoin profits.
Tesla’s Bitcoin strategy has been highly effective so far, serving as a case study for how other corporations may use Bitcoin to replace a portion of their cash reserves.
Several firms that invested in Bitcoin before Tesla, on the other hand, have enjoyed even larger returns.
MicroStrategy, a business analytics firm, for example, bought $3.15 billion worth of Bitcoin in various rounds. The company’s net Bitcoin earnings are currently approaching $6.3 billion, nearly tripling its investment from its initial purchase on Aug. 11, 2020.
Square, the payment processing company founded by Jack Dorsey, has experienced significant profits from its $220 million Bitcoin investment, which is now worth over $442 million.
Hut 8 Mining Corp, a crypto mining company located in Canada, has seen the value of its $39.3 million Bitcoin acquisition grow by more than 600 percent, reaching over $250 million. The firm also disclosed intentions to hold 5,000 BTC by 2022 in June.