It has been a month and a week since Tesla made the official announcement in a filing with the US SEC that it had acquired $1.5 billion Bitcoin.
The exact BTC purchase size wasn’t mentioned in the document, but since Bitcoin was traded between $29,000 – $37,000 in January 2021, Tesla’s $1.5 billion outlay means that the company may hold at least 40,000 BTC.
Taking into consideration these speculative figures and the increase in BTC price since the end of January, the 40,000 BTC would now be worth $2.2 billion. The number translated to $700 million in unrealized profit.
Basically, Tesla has around $19 million in unrealized profit per day, every day, since it has announced that it bought Bitcoin.
Tesla earned $31.54 billion in revenue from selling 499,550 cars in 2020 and had a profit of $721 million. The ownership of BTC has almost overshadowed the profit margin – even more so if we take into consideration the fact that the above-mentioned numbers were calculated for the likely minimum BTC stash.
Looking at car sales across the year as a flat average, the company has sold around 1,368 cars per day with a daily profit of $1.98 million.
With the $19 million in unrealized profits per day from Bitcoin, in order to get the same numbers in actual business, Tesla would need to increase the daily sales of cars by more than 860% and all other factors and data should remain constant from 2020.
If we take into consideration some of the predictions for BTC, with some believing the King of Crypto may reach a six-digit price valuation, Tesla’s unrealized gains from simply owning the asset would completely overshadow the whole part of manufacturing cars.