Leading cryptocurrency Bitcoin (CRYTPO: BTC) hit all-time highs in 2021, a year that saw many exciting events for the cryptocurrency.

One of the big stories in 2021 was large companies adding Bitcoin to their balance sheets.

Here’s a look back at when Tesla Inc (NASDAQ:TSLA) bought Bitcoin and how much investors could have made following the electric vehicle giant’s lead.

What Happened: On Feb. 8, 2021, Tesla disclosed it had purchased $1.5 billion worth of Bitcoin, a move that was made in the first quarter in the month of January.

The announcement that Tesla had bought Bitcoin led to an immediate lift in the price of Bitcoin and to experts who saw it as a key catalyst and support for the future of cryptocurrency.

Ark Invest CEO Cathie Wood had previously said companies that added Bitcoin to their balance sheets were one of the reasons for her huge price target for Bitcoin in the future.

Tesla’s purchase of Bitcoin came after companies like MicroStrategy Inc (NASDAQ:MSTR) and Block Inc (NYSE:SQ) had bought the cryptocurrency. Given Tesla’s size and the influence Tesla CEO Elon Musk has, the purchase was widely recognized as a major catalyst.

Tesla later announced it sold $272 million of its Bitcoin in the first quarter, which it said had a “positive impact” on its quarterly profitability with $128 million in proceeds from Bitcoin.

In fiscal 2022, Tesla announced the sale of 75% of its Bitcoin during the second quarter, bringing in $936 million in cash to its balance sheet.

While Tesla has sold most of its original Bitcoin purchase, the company still holds $184 million in “digital assets” on its balance sheet as of the third quarter. This total could include Bitcoin and other cryptocurrencies such as Dogecoin (CRYPTO: DOGE), which it has accepted as a payment option for merchandise before.

In March 2021, Tesla also began accepting Bitcoin as a form of payment for Tesla vehicles, a move that was short-lived.

“You can now buy a Tesla with Bitcoin,” Musk announced on March 24, 2021.

Musk said that Tesla would hold the Bitcoin and not convert the payments to fiat.

Two months later, Tesla stopped accepting Bitcoin as a form of payment for its vehicles. Musk would later state that one of the reasons for the stoppage was due to the energy consumption Bitcoin mining requires.

“When there’s confirmation of reasonable (50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said.

Many have wondered if Tesla will resume making the transactions with Bitcoin with reports that the 50% threshold has now been reached.

Here is a look at how Bitcoin has performed since Tesla’s purchase.

Related Link: EXCLUSIVE: Why Does Cathie Wood Think Bitcoin Is Going To $1 Million — What Does She Know That We Don’t?

Investing $1,000 in Bitcoin: The leading cryptocurrency hit all-time highs in November 2021. The following year brought a decline for the entire cryptocurrency sector with the bankruptcies of several cryptocurrency trading platforms, including FTX.

Optimism has returned to the cryptocurrency market in 2023 with the potential approval of spot Bitcoin ETFs serving as one of the major catalysts recognized by analysts and investors.

Bitcoin hit a high of $46,203.93 on Feb. 8, 2021, after Tesla’s purchase was disclosed. A $1,000 investment in Bitcoin at its high on Feb. 8, 2021, could have purchased 0.0216 BTC.

The $1,000 investment would be worth $943.74 today, based on a price of $43,691.58 for Bitcoin at the time of writing. This represents a decline of 5.6% over the last nearly three years.

An investor who invested the same $1,000 in the SPDR S&P 500 ETF Trust, which tracks the S&P 500 Index, would be up 21.5% over the same time period with the $1,000 investment now worth $1,214.90.

While the price of Bitcoin has declined since this key moment, the return has outperformed an investment in Tesla.

The $1,000 investment in Tesla at the same time would be worth $883.80 today, representing a decline of 11.6%.

Bitcoin hit an all-time high of around $68,789.63 in November 2021. The $1,000 investment in Bitcoin was worth $1,485.86 at its peak, up 48.6%.

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