Elon Musk’s electric car company is poised to profit more from its Bitcoin investment made in January than from all of its car sales in the entirety of 2020, according to a note from U.S. research firm Wedbush Securities.
Tesla disclosed earlier this month that it bought $1.5 billion worth of Bitcoin in January. Following Tesla’s disclosure, Bitcoin’s price shot up like one of the rockets from Musk’s other venture, SpaceX. Moments after the news broke, Bitcoin’s price jumped by 8.5%.
And Bitcoin has kept rising: 12 days later, Bitcoin has broken $57,000, securing a market cap just north of $1 trillion.
Wedbush calls the Bitcoin investment a “side show for Tesla” but also thinks it could “have a ripple impact” for public companies over the next year and a half.
Even so, the firm predicts less than 5% of public companies will copy Tesla’s Bitcoin investment “until more regulatory goal posts are put in place around the crypto market.” Wedbush remains optimistic that crypto “will have a seismic impact for blockchain, payments, banks, and semis in the years to come.
