Tesla has made roughly $1 billion in paper profits from its investment into bitcoin, according to Daniel Ives, an analyst at Wedbush Securities.
The company is “on a trajectory to make more from its Bitcoin investments than profits from selling its EV (electric vehicle) cars in all of 2020,” Ives estimated in a note published Saturday.
Earlier this month, the U.S. electric carmaker disclosed in a Securities and Exchange Commission filing that it had bought $1.5 billion worth of bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
The purchase was made some time in January, the company said without disclosing when or at what price it bought bitcoin for. It’s unclear if Tesla has sold any of the bitcoin yet.
Bitcoin has seen a huge rally this year, touching fresh record highs regularly. Bitcoin’s market value topped $1 trillion for the first time last week, and the cryptocurrency is up 94% year-to-date.