Tesla, which revealed it bought $1.5 billion worth of Bitcoin earlier this month, is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020,” according to a note by Daniel Ives, an analyst at Wedbush Securities, reported by CNBC.
Ives estimates that Tesla has made roughly $1 billion in paper profits from its investment into Bitcoin, according to CNBC.
In addition to the Bitcoin investment, Tesla will begin accepting the cryptocurrency as a form of payment for its products in the near future, according to a Tesla Securities and Exchange Commission filing.
“While the Bitcoin investment is a side show 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,” according to CNBC’s report on Ives’ note.
Bitcoin broke the $50,00 ceiling last week, reaching $58,000 over the weekend before dipping back to $53,000 this morning.
CoinMarketCap valued the crypto at around $1 trillion last week, a huge milestone. Bitcoin has added more than $415 billion of value in 2021 alone, Bloomberg reports.
Musk defended Tesla’s Bitcoin purchase last week, tweeting that Bitcoin “is simply a less dumb form of liquidity than cash.” However, he tweeted again on Saturday, saying that Bitcoin and Ethereum “do seem high lol.”
Tesla (NASDAQ: TSLA), which became the newest S&P 500 member when it joined the index in December 2020, missed the consensus earnings-per-share estimate for the fourth quarter (as reported by Seeking Alpha) of $1.03, reporting $0.80 EPS, according to its earnings statement. However, the company beat the revenue estimate of $10.38 billion, reporting $10.74 billion in revenue, a 46% increase year over year.
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This article originally appeared on GOBankingRates.com: Tesla on Track to “Make $1 Billion” in Bitcoin Profits