Tesla shocked many investors and analysts when it announced earlier this year it had purchased $1.5 billion worth of Bitcoin. The automaker’s move into cryptocurrency went even further when it started accepting it as payment for its vehicles.
The option was limited to buyers in the U.S. and was short lived. Less than two months after adding it to the Design Studio, Tesla removed it citing concerns about the use of fossil fuels in Bitcoin mining.
It became even more of a rollercoaster ride when the price of Bitcoin tumbled to around $30,000 USD in July. The drop resulted in Tesla recording a $23 million impairment in Q2 2021 due to the $1 billion loss.
But almost as quickly as it dropped, the price has risen to near-record highs, currently sitting at around $57,000 USD. This means Tesla’s Bitcoin position is now up over $1 billion, the same amount it was up earlier this year.
If they have a long term vision for their holding, Tesla’s investment looks like it could grow even further. Many are predicting the cryptocurrency could reach prices north of $100,000 by 2023.