MicroStrategy and Tesla's Bitcoin strategies are yielding contrasting results

MicroStrategy and Tesla's Bitcoin strategies are yielding contrasting results Picture 1

MicroStrategy, a company providing business intelligence, mobile software and cloud-based services, made its first Bitcoin purchase in August 2020 when the asset was trading at around 10,000. USD. Since then, the company has been steadily accumulating Bitcoin, now holding more than 1% of the total supply worth $14.58 billion.

In contrast, electric car manufacturer Tesla entered the market a little later, buying Bitcoin in January 2021, near the market's peak that year.

Based on data from Arkham Intelligence, Tesla currently owns 11,509 Bitcoins worth about $767.6 million, while SpaceX holds about 8,285 Bitcoins worth $554.3 million. Thus, the total number of Bitcoins held by Elon Musk's two companies is nearly 19,794, worth about 1.3 billion USD based on the current market price.

In 2021, Tesla bought $1.5 billion worth of Bitcoin, probably around 38,900 BTC, but sold a significant portion in 2022. If Musk had held on until now, then This could be worth about $2.6 billion.

The different trajectories of these two companies are reflected in their stock performance. MicroStrategy's MSTR has seen a spike of more than 1,200% since its initial Bitcoin investment, while Tesla's stock has stalled, down 31% year-to-date.

As a result, MicroStrategy rose to the top in terms of market capitalization, while Tesla fell to the 18th largest asset by market capitalization.

David Pac

Update 06 April 2024