Tesla makes $800 million a month. How much money have those institutions that invested in Bitcoin made?

On February 8, 2021, Tesla stated in a document submitted to the U.S. Securities and Exchange Commission (SEC) that it had purchased $1.5 billion worth of Bitcoin. This move made Tesla the second largest listed company holding Bitcoin.

Shortly after Tesla submitted the documents, a post published on the Reddit forum in January 2021 caused heated discussion.

The author of the post claims to be in California and works in Tesla software development. In the post, the author said that in the past 72 hours, our company (Tesla) bought 24,700 bitcoins (with a total value of approximately $819 million) at an average price of $33,142. The author also said that Tesla employees created a computer program robot using Python and Nodejs languages ​​to buy a small amount of bitcoin every few seconds, and increase the amount of bitcoin purchased when encountering a drop of more than 1.5%.

If the average price of Tesla's purchase of Bitcoin is calculated at US$331,420 according to the data described by the user, then Tesla's US$1.5 billion investment in Bitcoin has risen to US$2.353 billion, with a floating profit of approximately US$853 million.

You know, Tesla sold about 499,500 electric vehicles in the global market in 2020, and its net profit was only US$721 million. Tesla's investment in Bitcoin is equivalent to its full-year revenue in 2020.

Tesla’s gains on Bitcoin, which has only been in the market for a month, are already so impressive. How much money have those listed companies and institutions that have already entered the market made on Bitcoin?

ARK INVEST Ark Investment, investing in GBTC, made a floating profit of approximately US$247 million

According to data officially disclosed by ARK, as of February 19, ARK Next Generation Internet ETF "ARKW" held 8.7698 million shares of GBTC, currently worth US$463 million, of which 2.597 million shares were purchased in 2021.

Since ARK's earliest purchase of GBTC can be traced back to 2015, statistics are difficult to obtain, so only ARKW's profits in the first quarter of 2021 are counted here.

GBTC has risen 67.47% since the beginning of the year, so the 6.1728 million shares of GBTC purchased by ARKW before 2021 currently have a floating profit of US$220 million.

If the GBTC purchased by ARKW in 2021 is calculated based on the daily closing price of GBTC, the current floating profit of GBTC purchased in 2021 is approximately US$27.6 million.

ARKW’s purchase of GBTC in 2021

To sum up, ARK's total floating profit from GBTC investment in 2021 was approximately US$247 million.

MicroStrategy's profit exceeds $2.5 billion

On December 20, 2020, MicroStrategy CEO Michael Saylor commented on Tesla CEO Elon Musk's tweet and suggested converting the US dollars in Tesla's balance sheet into Bitcoin. At the same time, Michael Saylor also said that if Tesla, a component of the S&P 500, buys Bitcoin, more companies will be affected and buy Bitcoin, which will push the market value of Bitcoin to $1 trillion.

MicroStrategy already held a large amount of Bitcoin before Michael Saylor suggested Musk to buy Bitcoin. MicroStrategy began buying Bitcoin in August 2020, initially purchasing 21,454 Bitcoins for a total price of US$250 million, and then made multiple purchases. Currently, MicroStrategy holds a total of 71,079 Bitcoins, worth US$3.696 billion.

According to statistics, MicroStrategy's total cost of purchasing Bitcoin is approximately US$1.145 billion, which means that MicroStrategy's unrealized profit on Bitcoin has exceeded US$2.5 billion.

MicroStrategy also announced on February 17, 2021 that it would raise US$900 million in the form of convertible bonds to purchase Bitcoin. The expected issuance deadline is February 19 and the bond maturity date is February 15, 2027.

In addition, MicroStrategy's CEO Michael Saylor also bought a large amount of Bitcoin. On October 28, 2020, Michael Saylor tweeted that he personally held 17,732 BTC, with an average purchase price of approximately $9,882. If Michael Saylor had not sold, his current floating profit would be approximately $746 million.

Ruffer Investment made nearly $900 million in profit in 3 months

UK-based Ruffer Investment began investing in Bitcoin in November 2020, investing a total of about $670 million, equivalent to about 2.5% of the company's assets under management. Based on the time of purchase, Ruffer holds about 45,000 Bitcoins.

On February 3, 2021, Ruffer Investment Director Duncan MacInnes said that he had sold $650 million worth of Bitcoin and still held about $700 million worth of Bitcoin.

Since Ruffer last sold Bitcoin, Bitcoin has risen by about 28%, which means that the book value of Ruffer's $700 million Bitcoin has risen to $896 million.

For the company, which manages $27 billion in assets, investing in Bitcoin brought it nearly $900 million in net gains in just three months.

In addition to the above-mentioned institutions and enterprises, many listed companies have also bought Bitcoin. With the rise in Bitcoin prices, this part of the investment has brought rich returns to these companies. According to statistics from BlockBeats, Galaxy Digital Holdings' current floating profit from investing in Bitcoin is US$718 million, and Marathon Patent Group's floating profit is US$100 million. Although payment giant Square holds less Bitcoin than Marathon Patent Group, its purchase price is lower, so its profit exceeds Marathon Patent Group by US$194 million.

On February 18, Dan Bin, the founder of Oriental Harbor Fund and author of "The Rose of Time", said that he had purchased 1% of the Bitcoin ETF. He also said that if the number of long-term holders (of Bitcoin) increases, or companies like Tesla continue to join, it is very possible to reach the $400,000 mentioned by ARK "Bull Market Queen".

Of course, if BTC rises to $400,000 per coin, based on ARK's current holdings of GBTC, ARK's investment in Bitcoin will make a profit of more than $2.6 billion, and MicroStrategy's profit will exceed $20 billion.