Tesla's Bitcoin Blunder: Here's How Much EV Giant Could Have Made If It Listened To Michael Saylor's 'One Rocket Scientist To Another' Pitch
Portfolio Pulse from Chris Katje
Tesla Inc (TSLA) could have made nearly a $20 billion profit on its Bitcoin (BTC) investment if it had followed Michael Saylor's advice to convert its balance sheet to Bitcoin. Tesla disclosed a $1.5 billion Bitcoin purchase in February 2021 and made sales in 2021 and 2022, realizing a potential profit of $1.208 billion. However, based on the cash Tesla had at the end of the third quarter of 2020, it could have bought 598,934.4749 BTC, which would be worth $34,025,293,828.10 today, nearly a $20 billion profit. MicroStrategy, led by Saylor, remains one of the largest Bitcoin holders.
February 27, 2024 | 4:47 pm
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MicroStrategy, led by Michael Saylor, continues to be one of the largest Bitcoin holders, which could positively impact its stock as Bitcoin's value fluctuates.
MicroStrategy's position as one of the largest Bitcoin holders, with recent purchases adding to its holdings, could positively impact its stock price in the short term. The company's aggressive investment strategy in Bitcoin, as advocated by Michael Saylor, aligns with the potential for high returns on investment as the value of Bitcoin increases. This strategy, however, also exposes the company to significant risk due to Bitcoin's volatility.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Tesla could have significantly increased its profit from Bitcoin investment if it had followed Michael Saylor's advice, potentially impacting its stock positively.
Tesla's strategic decision not to convert its balance sheet entirely to Bitcoin as suggested by Michael Saylor resulted in a missed profit opportunity of nearly $20 billion. This decision and the subsequent public discussion could influence investor perception and potentially impact Tesla's stock price positively in the short term, as it highlights the company's conservative approach to cryptocurrency investment and its existing profit from Bitcoin sales.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90