Statistical institution enters Bitcoin for profit | Tesla makes a crazy profit of $800 million in a single month? The biggest winner: MicroStrategy

With $1.5 billion in Bitcoin, Tesla becomes the second-largest publicly traded company in terms of Bitcoin holdings.

(This article is authorized for reposting from BlockBeats, titled "Tesla Earns $800 Million a Month, How Much Money Have Institutions Invested in Bitcoin Earned?", original article here)

Just shortly after Tesla filed its documents, a post on Reddit forum from January 2021 sparked discussions.

The author of the post claims to be in California and working in Tesla's software development. In the post, the author stated, "In the past 72 hours, our company (Tesla) bought 24,700 Bitcoins at an average price of $33,142 each (total value of approximately $819 million)." The author also mentioned that Tesla's employees created computer program bots using Python and Nodejs languages to buy small amounts of Bitcoin every few seconds and increase the purchase amount when there is a drop of more than 1.5%.

If we calculate Tesla's purchase of Bitcoin at an average price of $33,142 as described by the user, then Tesla's $1.5 billion investment in Bitcoin has risen to $2.353 billion, with a floating profit of approximately $853 million.

It is worth noting that in 2020, Tesla sold approximately 499,500 electric vehicles in the global market, with a net profit of only $721 million. Tesla's investment in Bitcoin is equivalent to its annual revenue in 2020.

Just within a month of entering the market, Tesla's remarkable profits in Bitcoin have already attracted attention. How much money have those publicly traded companies and institutions that entered the market earlier earned on Bitcoin?

ARK INVEST Ark Investment Profits approximately $247 million from Investing in GBTC

According to official disclosure data from ARK, as of February 19, ARK's Next Generation Internet ETF "ARKW" holds 8,769,800 shares of GBTC, currently valued at $463 million, with 2,597,000 shares purchased in 2021.

Since ARK's earliest purchase of GBTC dates back to 2015, it is challenging to compile precise statistics. Here, we are only calculating the profit situation for ARKW in the first quarter of 2021.

GBTC has risen by 67.47% since the beginning of the year, resulting in a profit of $220 million for ARKW from the 6,172,800 shares of GBTC purchased before 2021.

In 2021, the profit from ARKW's purchase of GBTC, calculated based on GBTC's daily closing price, is approximately $27.6 million.

Combining the above, ARK's total profit from GBTC investments in 2021 is approximately $247 million.

MicroStrategy Profits exceed $2.5 billion

On December 20, 2020, MicroStrategy CEO Michael Saylor commented under Tesla CEO Elon Musk's tweet, suggesting Tesla convert its USD assets to Bitcoin. Michael Saylor also mentioned that if Tesla, as a constituent of the S&P 500, buys Bitcoin, more companies would follow suit, potentially driving Bitcoin's market value to $1 trillion.

Prior to Michael Saylor's recommendation to Musk to purchase Bitcoin, MicroStrategy had already accumulated a significant amount of Bitcoin. Starting from August 2020, MicroStrategy purchased 21,454 Bitcoins for a total price of $250 million and made additional purchases thereafter. Currently, MicroStrategy holds a total of 71,079 Bitcoins, valued at $3.696 billion.

Statistics show that MicroStrategy's total cost for buying Bitcoin is approximately $1.145 billion, indicating that MicroStrategy's profit from Bitcoin has exceeded $2.5 billion.

On February 17, 2021, MicroStrategy announced a plan to raise $900 million through convertible bonds to purchase Bitcoin, with the issuance deadline set for February 19, 2021, and the bond maturity date set for February 15, 2027.

In addition, MicroStrategy CEO Michael Saylor personally holds a substantial amount of Bitcoin. On October 28, 2020, Michael Saylor tweeted that he owns 17,732 BTC purchased at an average price of approximately $9,882. If Michael Saylor has not sold any, his current profit is around $746 million.

Ruffer Investment Profits nearly $900 million in 3 Months

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

On February 3, 2021, Ruffer's Investment Director Duncan MacInnes stated that they had sold Bitcoins worth $650 million, leaving them with Bitcoins worth around $700 million.

Since Ruffer's last sale of Bitcoin, Bitcoin has risen by approximately 28%, meaning the $700 million worth of Bitcoins held by Ruffer has now appreciated to $896 million.

For this asset management company with assets under management of $27 billion, the investment in Bitcoin has brought nearly $900 million in net income in just three months.

In addition to the aforementioned institutional enterprises, many public companies have also invested in Bitcoin. With the rise in Bitcoin prices, these investments have brought substantial returns to these companies. According to statistics from BlockBeats, Galaxy Digital Holdings currently has a profit of $718 million from Bitcoin investments, Marathon Patent Group has a profit of $100 million, and payment giant Square, although holding fewer Bitcoins than Marathon Patent Group, but with a lower purchase price, has a profit exceeding Marathon Patent Group at $194 million.

On February 18, 2021, Dan Bin, founder of Eastern Harbor Fund and author of "The Time of Roses," stated that he had purchased 1% of a Bitcoin ETF fund. He also mentioned that if more long-term holders of Bitcoin increase, or if companies similar to Tesla continue to join, reaching the $400,000 as mentioned by ARK's "Queen of the Bull Market" is very possible.

Of course, if BTC rises to $400,000 per coin, then based on ARK's current holdings of GBTC, ARK's investment in Bitcoin would yield profits exceeding $2.6 billion, and MicroStrategy's profits would surpass $20 billion.