Tesla and Bitcoin Boom

Even after about three years since it placed its bet on Bitcoin (BTC), Elon Musk’s electric vehicle manufacturer, Tesla (NASDAQ:TSLA), is still reaping the benefits of this bet. In an unsurprising twist, the company’s Bitcoin stash has reclaimed the $1 billion valuation milestone, according to data insights from Arkham Intelligence. This portfolio boost helps compensate for the previous sell-offs the firm has made recently.

Tesla's Current Holdings

Arkham Intelligence data shows that Tesla still holds 11,509 Bitcoin units on the Coinbase (NASDAQ:COIN) Prime platform. This holding is equivalent to exactly $1,003,680,252.55 at a price of $87,206. In a few days, the portfolio has grown by $96.77 million, setting it back into unrealized profit.

Tesla entered its Bitcoin position in Q1 2021, when it bought $1.5 billion worth of the coin. In the succeeding years, it made a few sales that pushed the portfolio below the $1 billion benchmark. As reported earlier by U.Today, Elon Musk confirmed that the firm has not sold its remaining Bitcoin stash.

This has turned out to be a good call, as the firm is now benefiting from the ongoing bull market rally. As of writing, Bitcoin traded for $88,902.18, up 9.56% in the past 24 hours after breaching multiple all-time highs.

Institutional Interest

The performance of Bitcoin makes it easier for institutional investors to FOMO. Notably, amid the ongoing market rally, MicroStrategy acquired an additional 27,200 BTC units to increase its overall Bitcoin stash.

Today, more institutional investment firms are buying more Bitcoin. Given this trend, it remains unknown whether Tesla will make an additional move to buy more of the coin. Rather than buying BTC directly from the spot market, investors are increasingly gaining exposure through spot Bitcoin ETF products.

Firms like Susquehanna Investment Group (SIG) and BNP Paribas (OTC:BNPQY) are also exposed to BTC.

This article was originally published on U.Today