In terms of percentage gains over the last five years, the price of bitcoin has finally surpassed that of Tesla’s (TSLA) shares.After selling a sizable portion of its Bitcoin assets in 2022, the maker of electric vehicles also lost out on a possible $1.27 billion in profit.
Over the past five years, Bitcoin’s price has risen over 1,180%, while Tesla’s stock price has risen over 806%, according to TradingView data.
In particular, during the last year, Bitcoin’s returns have surpassed those of TSLA when considering shorter time frames.Throughout the last 12 months, Bitcoin increased 139% while Tesla’s stock price dropped over 11%. Year to date, BTC has increased 49% while Tesla’s stock price has down 42%.With a $1.3 trillion market valuation, higher than that of Meta Platforms, Berkshire Hathway, Visa, or JPMorgan Chase, Bitcoin has had such a remarkable year that it is now the ninth-largest asset in the world.Comparatively, with a $455 billion market capitalization, Tesla ranks as the 21st largest asset in the world according to Companiesmarketcap.
When Tesla purchased more than $1.5 billion worth of Bitcoin in February 2021, at a price of roughly $36,000, the business became one of the first publicly traded companies to invest in the cryptocurrency.Nonetheless, in March 2021, Tesla sold about 10% of its assets.In the second quarter of 2022, the business then sold almost 75% of its Bitcoin reserves.At current prices, Tesla would have made over $1.27 billion in profit if it hadn’t sold, an increase of almost 84% on its initial investment.
According to Arkham Intelligence, Tesla presently has 11,509 Bitcoin in Coinbase Prime Custody, valued at nearly $766 million.Andrey Stoychev, the head of prime brokerage at Nexo, claims that the primary cause of the 60% increase in the price of Bitcoin this year has been the approval of the 10 spot ETFs for the cryptocurrency in the United States. He said.
“U.S. spot Bitcoin ETFs’ role in elevating Bitcoin to a genuine asset class has been invaluable, with pleasing trading volumes and capital flows since launch.”
According to Dune, the ten Bitcoin ETFs accumulated combined on-chain holdings of over 835,000 BTC, valued at approximately $55.1 billion.