fbpx
QQQ
-4.14
343.48
-1.22%
DIA
-3.14
344.38
-0.92%
SPY
-3.82
419.91
-0.92%
TLT
+ 0.61
139.17
+ 0.44%
GLD
-1.06
169.18
-0.63%

Tesla, Square Make $5B On Bitcoin Investment While Small Cap Crypto Stocks Surge

February 22, 2021 6:49 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Tesla, Square Make $5B On Bitcoin Investment While Small Cap Crypto Stocks Surge

What Happened: Tesla Inc (NASDAQ:TSLA) and Square Inc (NYSE:SQ) are already up over $5 billion on their Bitcoin investments.

According to the data from Bitcoin Treasuries, the two companies have spent over $3 billion to acquire 151,919 BTC, which is now valued at over $8 billion.

Why It Matters: Tesla bought 48,000 BTC for $1.5 billion and has recorded a gain of over 70% on its Bitcoin investment which now amounts to $2.5 billion.

See also: How to Buy Bitcoin (BTC)

This return somewhat pales compared to MicroStrategy’s (NASDAQ:MSTR) investment of $1.15 billion that is now worth $3.9 billion.

The company's share price surged by over 500% since the announcement of its initial Bitcoin purchase, after it had remained relatively flat for five years.

The fact that the business intelligence company’s market value is so contingent on BTC price movements has led many analysts to say that MicroStrategy’s stock effectively functions as a Bitcoin ETF.

Conversely, companies like Square and Tesla haven't seen their stock price overly influenced by the underlying price of Bitcoin.

What Else: Somewhat confirming the hypothesis that smaller market cap stocks are more dependent on their Bitcoin purchase to add value to their price are Voyager Digital Ltd (CSE:VYGR), Riot Blockchain Inc (NASDAQ:RIOT), and Marathon Patent Group Inc (NASDAQ:MARA).

Marathon has rallied over 4000%, while Riot and Voyager have surged over 5000% over the past year.

Image: Austin Distel via Unsplash


Related Articles

Traders Of Crypto Report: 70% Of The Decade's Largest Financial Hacks Involve Stolen Bitcoin

The past decade’s most significant financial hacks have been a crypto heist of some kind. read more

Crypto Broker Voyager Digital's AUM Crosses $2.4B After Record-Setting Month

Voyager Digital Ltd (CNSX: VYGR), a crypto-asset trading platform for retail and institutional investors, has witnessed a record-setting month. read more

Opinion: The Doge Days Are Over. You Invested in Dogecoin, Now What?

This column does not necessarily reflect the opinion of the editorial board of Benzinga. Everybody familiar with traditional investing knows that penny stocks are rife with fraud and scams. read more

Could Ripple's (XRP) Latest Legal Win Be 'Game Over' For The SEC Lawsuit?

Ripple, the company linked to the XRP (XRP) token, has secured yet another goal in its legal match with the U.S. Securities and Exchange Commission by getting a right to see how the regular determines which cryptocurrency is a security, CoinDesk reported Tuesday. read more