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Tesla stock rises 8% as Bitcoin holdings surpass $1B

Tesla stock rises 8% as Bitcoin holdings surpass $1B

GrafaGrafa2024/11/13 08:00
By:Mahathir Bayena

Tesla’s strategic investment in Bitcoin (CRYPTO:BTC) has proven profitable, with the company now holding over $1 billion worth of the cryptocurrency.

According to Arkham Intelligence, Tesla’s Bitcoin holdings of 11,509 BTC have appreciated significantly, driven by Bitcoin's recent all-time high of $89,560.

The automaker initially acquired $1.5 billion in Bitcoin in February 2021, stating that the move aimed to diversify and enhance its cash returns.

The surge in the value of Tesla's Bitcoin holdings has been attributed to the cryptocurrency’s market rally rather than additional acquisitions.

Bitcoin's current market capitalisation has reached $1.75 trillion, surpassing silver’s global market value.

The recent resurgence in crypto has coincided with increased market confidence, fueled by President-elect Donald Trump’s pro-crypto stance and anticipation around U.S. spot Bitcoin ETFs.

Tesla’s stock reflected this positive momentum, rising 8% in post-market trading to $350, according to Google Finance.

Over the past month, Bitcoin's price has climbed more than 40%, currently trading at $88,768.81, up 9% in the last 24 hours based on CoinGecko data.

This increase has bolstered Tesla’s market capitalisation by nearly 39%, enhancing CEO Elon Musk's estimated net worth to $320 billion, as reported by Forbes.

Despite recent large-scale movements of its Bitcoin holdings, analysts suggest Tesla's activity indicates wallet restructuring rather than a sale.

Tesla’s Bitcoin had been dormant for almost two years until mid-October, when $765 million worth was shifted into seven wallets, still believed to be under Tesla’s control.

While Tesla appears to be safeguarding its current Bitcoin position, other companies, such as MicroStrategy, are expanding their holdings.

Under Michael Saylor’s leadership, MicroStrategy recently acquired 27,200 BTC, bringing its reserves to 279,420 BTC, valued at over $24 billion.

At the time of reporting, the Bitcoin price was $87,758.75.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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