Post Election Surge: Tesla Stocks Rise as Bitcoin Holdings Cross $1 Billion
Bitcoin Holdings Propels Tesla's Stock Value and Elon Musk’s Net Worth Up amid Crypto Surge
Tesla’s strategic investment in Bitcoin has once again proven to be a profitable move, as the company’s holdings have surged past the $1 billion mark.
Trump’s win last week boosted Musk’s paper wealth by roughly $70 billion.
Most of Musk’s wealth stems from his Tesla holdings, and in the four trading days since the election, the electric vehicle maker’s stock has jumped by about 39%. This has propelled the company’s market cap well past $1 trillion.
Forbes estimates Musk’s net worth at $320 billion, placing him roughly $90 billion ahead of Oracle founder Larry Ellison, the world’s second-richest person.
Tesla’s Bitcoin Bet Pays Off Big
In February 2021, Tesla made headlines by investing $1.5 billion in Bitcoin, aiming to diversify and maximize returns on its cash reserves.
Today, however, the bet has paid off with Tesla’s Bitcoin holdings now valued at over $1 billion according to blockchain analytics firm Arkham Intelligence. Tesla currently holds 11,509 BTC, an acquisition that has seen massive gains as Bitcoin recently hit an all-time high of over $89,000.
Bitcoin is currently trading at $88,768.81, up over 9% in the last 24 hours, according to CoinGecko data.
Tesla’s Bitcoin value has increased largely due to the broader crypto market surge rather than any additional acquisitions.
The recent re-election of Donald Trump, heightened institutional interest, and optimism over U.S. spot Bitcoin ETFs, have all contributed to pushing the price of Bitcoin by over 40% in the last month. The frenzy has pushed Bitcoin’s market capitalization to a whopping $1.75 trillion, surpassing silver in global rankings.
The positive momentum around Bitcoin has spilled over into Tesla’s stock as well. In after-hours trading, Tesla shares jumped 8%, reaching $350. This increase marks a 39% jump in the company’s market cap, directly benefiting Elon Musk, who strongly supported President-elect, Donald Trump. His net worth has now risen to an estimated $320 billion.
Tesla’s BTC Holding Strategy
On October 15, Tesla transferred approximately $765 million worth of Bitcoin into seven new wallets, after years of dormancy. According to reports, the assets were transferred to increase its security rather than for liquidation.
Furthermore, Tesla’s approach to Bitcoin has been conservative compared to other companies like MicroStrategy. Tesla has chosen to secure its current holdings rather than make new purchases, recently moving its entire Bitcoin holdings in a recent wallet rotation.
