Bitcoin Surpasses Tesla Stock in Performance, Ending a 2-Year Streak

Bitcoin has outperformed Tesla’s stock in terms of percentage gains over the past five years. While Tesla’s stock price has risen 806%, Bitcoin’s price has skyrocketed over 1,180%, according to TradingView data. In the shorter term, Bitcoin has also outperformed Tesla over the past year, with a rise of 139% compared to Tesla’s decline of over 11%. Year-to-date, Bitcoin is up 49% while Tesla’s stock price has dropped by 42%. This impressive performance has made Bitcoin the ninth-largest asset in the world, with a market capitalization of $1.3 trillion, surpassing companies like Meta Platforms, Berkshire Hathaway, Visa, and JPMorgan Chase. In comparison, Tesla is the 21st largest asset with a market capitalization of $455 billion.

Tesla made headlines in February 2021 when it became one of the first publicly traded companies to invest in Bitcoin. The company purchased over $1.5 billion worth of BTC, equivalent to around $36,000 per Bitcoin. Throughout the year, Tesla sold a significant portion of its Bitcoin holdings. In March 2021, around 10% of the holdings were sold, followed by the sale of approximately 75% of its Bitcoin reserves in the second quarter of 2022. If Tesla had held onto its Bitcoin, it would have made a profit of over $1.27 billion, an increase of 84% on its initial investment.

Currently, Tesla holds 11,509 BTC with a value of over $766 million through Coinbase Prime Custody, according to Arkham Intelligence. Despite missing out on potential profits, Tesla still maintains a significant Bitcoin holding.

The rise of Bitcoin exchange-traded funds (ETFs) in the United States has played a major role in Bitcoin’s success this year. The approval of ten Bitcoin ETFs has contributed to a 60% increase in Bitcoin’s price so far. These ETFs have accumulated over 835,000 BTC in on-chain holdings, worth over $55.1 billion, according to Dune. Andrey Stoychev, the head of prime brokerage at Nexo, believes that the introduction of these ETFs has elevated Bitcoin to a genuine asset class and has driven significant trading volumes and capital flows.

Bitcoin’s impressive price performance has surpassed Tesla’s stock gains over the past five years. The rise of Bitcoin ETFs in the US has contributed to its success this year, solidifying its position as a valuable asset class. Despite selling a large portion of its holdings, Tesla still holds a substantial amount of Bitcoin and could have made significant profits if it had held onto its initial investment.