Bitcoin price is outperforming Tesla stock for the first time since 2019, though the EV giant still maintains a sizeable BTC stash.
Bitcoin’s
BTC
$66,141
price has finally outperformed Tesla’s (TSLA) stock over the past five years in percentage terms. The electronic vehicle manufacturer has also missed out on a potential $1.27 billion in profit after selling a big chunk of its BTC holdings in 2022.
BTC overtakes TSLA in long-term gains
Over the past five years, Bitcoin’s price has risen over 1,180%, while Tesla’s stock price has risen over 806%, according to TradingView data.
Looking at smaller time horizons, Bitcoin’s returns have outperformed TSLA over the past year, in particular. Bitcoin rose 139% while Tesla fell over 11% over the past 12 months, while year-to-date BTC is up 49% while Tesla’s stock price is down 42%.
Such a stellar year so far for BTC has made it the world’s ninth-largest asset with a $1.3 trillion market capitalization, larger than Meta Platforms, Berkshire Hathway, Visa, or JPMorgan Chase.
In comparison, Tesla is the world’s 21st largest asset, with a $455 billion market capitalization, according to Companiesmarketcap.
Tesla was among the first publicly traded companies to invest in Bitcoin back in February 2021, when the company bought over $1.5 billion worth of BTC, around the $36,000 mark.
However, Tesla sold around 10% of its holdings in March 2021. Then, the company sold approximately 75% of its Bitcoin reserves in the second quarter of 2022.
Had Tesla not sold, it would have made over $1.27 billion in profit, up over 84% on its initial investment, at current price levels.
Tesla currently holds 11,509 BTC worth over $766 million with Coinbase Prime Custody, according to Arkham Intelligence.
Bitcoin ETFs are the main reason why BTC is winning
The approval of the ten United States spot Bitcoin exchange-traded funds (ETFs) was the main reason behind BTC price rising 60% so far this year, according to Andrey Stoychev, the head of prime brokerage at Nexo. He told Cointelegraph:
“U.S. spot Bitcoin ETFs’ role in elevating Bitcoin to a genuine asset class has been invaluable, with pleasing trading volumes and capital flows since launch.”
The ten Bitcoin ETFs amassed over 835,000 BTC in cumulative on-chain holdings, worth over $55.1 billion, according to Dune.