Elon Musk-Led Tesla's Bitcoin Investment Rakes In $230M In Unrealized Profit Since BTC ETF Introduction

Tesla, the electric car company owned by Elon Musk, has reaped a substantial profit of over $230 million from its Bitcoin investment, following the introduction of Bitcoin BTC/USD spot ETFs earlier this year on Jan. 11. 

What happened: On-chain investigators uncovered this as they delved into the digital wallets of both Tesla and SpaceX, another venture led by Musk, revealing a total value of over $1 billion in Bitcoin.

Data from Arkham Intelligence reveal Tesla’s Bitcoin assets to be valued at $760 million, which reflects a gain of over $230 million within just three months. The surge in Bitcoin’s price, which was $69,000 on Coinbase earlier this week—a figure last seen in November 2021—is credited in part to the buying trend fueled by the new U.S.-based spot Bitcoin ETFs.

Bitcoin’s price, which stood approximately at $45,000 when the ETFs were introduced, experienced a short dip to the $39,000 range only to recover swiftly, climbing above $50,000 midway through February. 

Earlier assessments in January by Bitcoin Treasuries estimated Tesla’s Bitcoin holdings at nearly 9,720 BTC. However, Arkham analysts have since adjusted this figure upward to 11,509 BTC. This reflects an accrual of 1,789 BTC over what Tesla had reported in its last earnings update.

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Why It Matters: In a move in February 2021, Tesla invested $1.5 billion in Bitcoin. Although Tesla considered accepting Bitcoin for car purchases temporarily, they eventually postponed this initiative.

Tesla had sold off a portion of its Bitcoin stake—10% in March 2021, followed by 75% in the second quarter of 2022. But despite these sales, the value of Tesla’s current Bitcoin holdings is quite profitable.

On the SpaceX front, the company raked in over $165 million in profits, after the introduction of BTC spot ETFs in January.

Since the market went on a spree in November, with Bitcoin prices almost doubling from roughly $35,000, SpaceX’s Bitcoin investments have bounced back, currently showcasing a total profit of $132 million. Meanwhile, Tesla’s profit has ballooned to $455 million, as per information from Arkham.

Price Action: At the time of writing, BTC was trading at $67,129, up 1.54% in the last 24 hours, according to Benzinga Pro.

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