Tesla and Square Are Up On Their Bitcoin Purchases

With Bitcoin hitting all-time highs, here’s a look at how much Tesla and Square’s Bitcoin purchases are up.
Lauren MuskettOctober 21, 2021

Electric vehicle giant Tesla made headlines in February when it was unveiled the company bought $1.5 billion in Bitcoin.

With Bitcoin hitting all-time highs Wednesday, here’s a look at how much Tesla’s Bitcoin purchase is up.

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What Happened: Tesla announced a $1.5 billion purchase of Bitcoin in the first quarter.

Tesla sold $272 million in Bitcoin in the first quarter. The sale had a $101 million positive impact on the company’s profitability in the first quarter.

Tesla CEO Elon Musk said the sale was done to prove the liquidity of the asset as an alternative to holding cash on the balance sheet.

The company did not announce any sales of Bitcoin in the second or third quarter, as the company continues to hold the rest of its $1.5 billion purchase.

Bitcoin hit an all-time high north of $66,000 Wednesday and traded at $65,866.22 at the time of writing.

Based on the current price of Bitcoin, Tesla’s remaining stake is worth $2.83 billion. When taking in the $101 million profit earlier this year, Tesla is up $1.4 billion on its initial $1.5 billion purchase, nearly doubling the value of the cryptocurrency holding.

Square Purchase Up Big, Too: Another big public company that made waves with a Bitcoin purchase was Square. The company began buying Bitcoin in October 2020 with a $50 million purchase. To date, Square has invested $220 million in Bitcoin.

Square has doubled its money on its Bitcoin investment. The company currently holds 8,027 Bitcoin, according to Bitcoin Magazine.

The 8,027 Bitcoin is worth $528.9 million today based on the price of Bitcoin at the time of writing.

Square has an average purchase price on its Bitcoin of $27,407, which Bitcoin Magazine points out is lower than what Tesla and MicroStrategy’s average cost base is. MicroStrategy and Tesla have a cost basis of $27,713 and $34,963 respectively.

This story originally appeared on Benzinga. © 2021

Benzinga does not provide investment advice. All rights reserved.