American carmaker Tesla Inc. has already gained $1 billion in profits from its Bitcoin investments, CoinTelegraph reported.
- Tesla’s holdings are estimated at 43,200 BTC, roughly worth $2.5 billion at current prices. This is 65% or $1 billion higher than what the firm paid in February when it reported buying $1.5-billion worth of the digital token.
- The company unloaded 10% of its Bitcoin holdings or some 46,000 BTC in the second quarter at around $50,000 a piece, equivalent to gains worth $128 million. The company’s net profit surged to $1.14 billion for the quarter.
- Tesla earlier this month reported an improvement in electric vehicle deliveries during the third quarter, fueling growth expectations for the fourth quarter along with the Bitcoin profits.
A number of other firms have also invested in Bitcoin, such as business intelligence firm MicroStrategy, payment service firm Square, and Canadian crypto miner Hut 8 Mining Corp. TSLA is up 5.86% premarket, while BTC is up 4.54%.