Bitcoin (BTC) has outperformed Tesla stock for the first time since 2019 in percentage terms over the past five years. According to TradingView, Bitcoin’s price has escalated by an astonishing 1,180%, while Tesla’s stock has risen by 806% in these five years.
Quick Take:
- Bitcoin (BTC) has outperformed Tesla stock in long-term gains for the first time in nearly five years.
- Over the last year, Bitcoin has soared by 139% while Tesla’s stock has dipped by 11%.
- The launch of ten U.S. spot Bitcoin ETFs has propelled BTC into a premier asset class which is impacting its price surge.
- Despite selling a major portion of its BTC in 2022, Tesla has held onto 9,720 BTC tokens.
This shifting trend highlights Bitcoin’s resilience and appeal as an investment. Moreover, it also underscores the volatile yet potent nature of digital currencies.
This year alone, Bitcoin (BTC) has seen a 60% increase, partly due to the approval of ten U.S. spot Bitcoin ETFs. This approval has played a pivotal role in legitimizing and boosting Bitcoin as a genuine asset class.
The head of the prime brokerage at Nexo, Andrey Stoychev, noted the spot ETFs’ role in elevating Bitcoin. These ETFs are noticing substantial trading volumes and capital inflows since their hyped approval from the SEC. According to Dune, these ETFs have accumulated over 835,000 BTC in cumulative holdings, worth over $55.1 billion.
Tesla’s Bitcoin (BTC) Holdings
Tesla initially purchased over $1.5 billion worth of Bitcoin in early 2021. However, the company sold about 75% of its Bitcoin (BTC) reserves in the second quarter of 2022, missing out on a potential $1.27 billion profit. It would have been possible given the crypto price surges.
Currently, Tesla holds 11,509 BTC valued at over $766 million. The Elon Musk-led company demonstrates a strong HODL strategy similar to that of Michael Saylor’s MicroStrategy.
Despite the massive sell-off in 2022, Tesla has maintained a consistent no-sale stance for seven consecutive quarters. This steady approach has paid off with Bitcoin’s price reaching a new all-time high of $73,250 in March.
Bitcoin is now ranked world’s ninth-largest asset with a market capitalization of $1.3 trillion. Thus, overshadowing Tesla’s position at the 21st spot with a market capitalization of $455 billion. The crypto asset has a higher market cap than the likes of Meta Platforms, Berkshire Hathway, Visa, or JPMorgan Chase.
Bitcoin (BTC) continues to gain momentum, attract strategic institutional holdings and enjoy favorable market conditions. Therefore, companies like Tesla and MicroStrategy illustrate a broader corporate shift towards cryptocurrency as a substantial part of their investment strategy.
With the recent Bitcoin halving event, further price growth is anticipated for BTC and other crypto tokens. This could potentially enhance the value of holdings for companies like Tesla that have bet big on Bitcoin. The alignment between tech firms and digital assets may set a precedent for how companies manage their investment portfolios in the future.
