Bitcoin Shatters Record Highs, With Elon Musk’s SpaceX And Tesla Making Huge Profits

By YGG News • March 14, 2024

Bitcoin Shatters Record Highs, With Elon Musk’s SpaceX And Tesla Making Huge Profits

Blockchain analytics start-up Arkham Intelligence has successfully located the crypto wallets of Tesla Inc. and SpaceX, two of Elon Musk’s businesses. Through the process of cross-referencing financial information with on-chain activities, Arkham was able to determine which large wallets these companies were holding. Based on Arkham’s research, SpaceX and Tesla own about 19,800 bitcoins between them. The holdings are dispersed throughout multiple wallets; SpaceX has about 8,300 tokens scattered across 28 wallets, and Tesla has about 11,500 BTC spread across 68 addresses.

Image source: Getty Images

Outstanding Gains During the Bitcoin Boom

Now that Bitcoin has surpassed $72,000 and is at new all-time highs, the total value of the tokens that Tesla and SpaceX own is more than $1.4 billion. Both businesses stand to make a sizable profit from this increase in value.

Gains on Investments
Tesla has experienced gains close to $500 million from its Bitcoin investment, while SpaceX has generated earnings of $276 million. Despite being relatively minor in comparison to the operating earnings of the companies, these profits represent noteworthy returns on investment.

Bitcoin Ventures by Tesla

In February 2021, Tesla made waves when it revealed a ground-breaking $1.5 billion Bitcoin investment. This action fueled a surge in the price of Bitcoin, which soon reached new all-time highs.

Nonetheless, strategic choices have characterized Tesla’s Bitcoin adventure, such as the sale of a portion of its holdings in June 2022 when the price of Bitcoin was $25,000. In addition, the business sold off 10% of all of its assets in March 2021, making almost $250 million in cash as Bitcoin surpassed $60,000 in value.

Environmental Issues and Cryptocurrencies

Over time, Elon Musk’s views on cryptocurrencies—Bitcoin in particular—have changed. Although he first supported Bitcoin by investing in it and enabling Tesla to accept it as payment for cars, he later changed his mind due to worries about its effects on the environment.

Due to environmental concerns arising from the energy-intensive mining process of Bitcoin, Musk announced in May 2021 that Tesla would stop accepting payments for vehicles using this cryptocurrency. Musk is still concerned about the potential effects of cryptocurrencies on the environment, even though he supports them in theory.

Despite employing many tactics to manage the unstable cryptocurrency market, Elon Musk’s businesses have made profitable investments in Bitcoin. Due to environmental concerns, Tesla has reduced its participation in Bitcoin transactions, but the corporation still gains from its significant holdings in the virtual currency. The financial landscapes are being redefined by Bitcoin, and Musk’s cryptocurrency initiatives are clearly profitable.

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