Billion dollars in Bitcoin. This makes Tesla the second-largest listed company holding Bitcoin.
Soon after Tesla submitted the documents, an article was published on the Reddit forum and was published in January 2021, which caused heated discussion.
The author of this post claims to be in California and engaged in Tesla software development. In the post, the author stated that in the past 72 hours, our company (Tesla) bought 24,700 bitcoins at an average price of US$33,142 (total value of approximately US$819 million). The author also stated that Tesla employees used Python and Nodejs to create a computer program robot, buying a small amount of bitcoin every few seconds, and increasing the number of bitcoins when it encountered a decline of more than 1.5%.
If according to the data described by the user, Tesla’s average purchase price of bitcoin is calculated at US$33,142, then Tesla’s US$1.5 billion investment in bitcoin has risen to US$2.353 billion, with a floating profit of approximately US$853 million.
You know, Tesla sold about 499,500 electric vehicles in the global market in 2020, and its net profit was only US$721 million. Tesla’s investment in Bitcoin is equivalent to 2020 full-year income.
Tesla’s earnings on Bitcoin, which has only entered the market for a month, have been so impressive. How much money did those listed companies and institutions that have entered the market earn on Bitcoin?
ARK INVEST Ark Investment, invested GBTC with a floating profit of approximately US$247 million
According to ARK’s official disclosure data, as of February 19, ARK next-generation Internet ETF “ARKW” held 8,769,800 shares of GBTC, currently valued at US$463 million, of which 2,597 million shares were purchased in 2021.
Since the earliest purchase of GBTC by ARK can be traced back to 2015, it is difficult to make statistics. Only ARKW’s profit in the first quarter of 2021 is calculated here.
GBTC has risen by 67.47% year-to-date, so the 6.172 million shares of GBTC purchased by ARKW before 2021 are currently floating at a profit of 220 million US dollars.
In 2021, if the GBTC purchased by ARKW is calculated at the daily closing price of GBTC, then the GBTC purchased in 2021 currently has a floating profit of approximately US$27.6 million.
ARKW’s purchase of GBTC in 2021
In summary, the total floating profit of ARK’s GBTC investment in 2021 is approximately US$247 million.
MicroStrategy makes over $2.5 billion in profit
On December 20, 2020, MicroStrategy CEO Michael Saylor commented on Tesla CEO Elon Musk’s Twitter suggestion to convert the US dollars in Tesla’s balance sheet to Bitcoin. At the same time, Michael Saylor also stated that if Tesla, a constituent of the S&P 500, buys Bitcoin, more companies will be affected by this and buy Bitcoin, which will push the market value of Bitcoin to 1 Trillions of dollars.
Before Michael Saylor advised Musk to buy Bitcoin, MicroStrategy already held a large amount of Bitcoin. MicroStrategy started buying bitcoins in August 2020, initially buying 21,454 bitcoins at a total price of 250 million U.S. dollars, and then making multiple purchases. Currently, MicroStrategy holds a total of 71,079 bitcoins, valued at $3.696 billion.
According to statistics, the total cost of MicroStrategy to buy bitcoin is about 1.145 billion U.S. dollars, which means that MicroStrategy’s floating profit on Bitcoin has exceeded 2.5 billion U.S. dollars.
MicroStrategy also announced on February 17, 2021 that it would raise US$900 million in the form of convertible bonds to purchase Bitcoin. The expected issuance deadline is February 19, and the bond maturity date is February 15, 2027.
In addition, MicroStrategy CEO Michael Saylor also bought a large amount of Bitcoin. On October 28, 2020, Michael Saylor stated on Twitter that he personally holds 17,732 BTC, with an average purchase price of approximately US$9882. If Michael Saylor did not sell, its current floating profit is approximately US$746 million.
Ruffer Investment made nearly US$900 million in profit in 3 months
Ruffer Investment, headquartered in the United Kingdom, began investing in Bitcoin in November 2020, with a total investment of about 670 million US dollars, which is equivalent to about 2.5% of the company’s assets under management. According to the time of purchase, Ruffer holds approximately 45,000 Bitcoins.
On February 3, 2021, Ruffer Investment Director Duncan MacInnes stated that he has sold 650 million US dollars worth of bitcoins, and there is still about 700 million US dollars worth of bitcoins left.
Since Ruffer last sold Bitcoin, Bitcoin has risen by about 28%, which means that the book value of Ruffer’s $700 million in Bitcoin has risen to $896 million.
For this company with assets under management of 27 billion U.S. dollars, its investment in Bitcoin has brought nearly 900 million U.S. dollars in net income in just three months.
In addition to the above-mentioned institutional enterprises, many listed companies have also bought Bitcoin. With the increase in the price of Bitcoin, this part of the investment has brought huge returns to these companies. According to the statistics of Rhythm BlockBeats, Galaxy Digital Holdings currently has a floating profit of 718 million U.S. dollars in bitcoin investment, and Marathon Patent Group has a floating profit of 100 million US dollars. Although the payment giant Square holds fewer bitcoins than Marathon Patent Group, it buy The entry price is low, so the profit exceeds Marathon Patent Group by US$194 million.
On February 18, Dan Bin, the founder of Oriental Harbor Fund and the author of “The Rose of Time”, stated that he had purchased 1% of Bitcoin ETF funds. Moreover, it also stated that if long-term holders (of Bitcoin) increase, or companies like Tesla continue to join, it is very possible to reach the $400,000 ARK “Bull Queen” said.
Of course, if BTC rises to US$400,000, based on ARK’s current share of GBTC, ARK’s investment in Bitcoin will make a profit of more than US$2.6 billion, and MicroStrategy’s profit will exceed US$20 billion.
