Leading cryptocurrency Bitcoin (CRYPTO: BTC) hit new all-time highs in March 2024 and could be headed to higher highs ahead of the 2024 presidential election.

Here’s a look back at the purchase of the cryptocurrency by Tesla Inc (NASDAQ:TSLA) and how much investors could have made following the lead of the electric vehicle company.

What Happened: While MicroStrategy may have led the way with adding Bitcoin to their balance sheet and holding the leading cryptocurrency since 2020, Tesla is not far behind with a purchase that was made in January 2021 disclosed in February 2021 to investors.

Tesla announced on Feb. 8, 2021 that it purchased $1.5 billion worth of Bitcoin. The purchase helped boost the price of Bitcoin that day as it was viewed as a key catalyst for the future of cryptocurrency.

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.

In recent quarters, Tesla has shown $184 million in “digital assets” on its balance sheet. That number could include both Bitcoin and Dogecoin (CRYPTO: DOGE), a cryptocurrency that can be used to buy merchandise from Tesla’s online store.

Tesla stated previously it could increase or decrease its digital asset holdings “at any time,” depending on business needs and the company’s view of the cryptocurrency market.

A recent report linked Tesla moving its Bitcoin holdings around to unknown wallets, which could foreshadow a potential sale of the cryptocurrency.

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

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Investing $1,000 in Bitcoin: The leading cryptocurrency fell in 2022 thanks to several macroeconomic issues and cryptocurrency events such as the bankruptcy of FTX, which rattled the sector.

Fast-forward to 2024, and Bitcoin hit new all-time highs in March. This followed the approval of Bitcoin ETFs, which saw strong demand and led to more financial institutions purchasing Bitcoins.

Bitcoin surged to $46,203.93 on Feb. 8, 2021, following Tesla’s purchase announcement, up from a high of $39,621.84 the previous day.

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 $1,468.65 today, up 46.9%.

An investor who put the $1,000 into Tesla stock instead would have turned the investment into $758.39, down 24.2% over the same time period.

While Bitcoin has outperformed Tesla stock since the company disclosed its Bitcoin purchase, the leading cryptocurrency has not outperformed the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500 Index.

A $1,000 investment in the ETF would be worth $1,491.58 today, up 49.2% over the same time period. This means that investors could have done better investing in the S&P 500 Index than Bitcoin

Investors who bought Bitcoin have outperformed top stocks and market indexes over many time periods, but the day of Tesla’s purchase disclosure is not one of them.

MicroStrategy co-founder Michael Saylor encouraged Tesla CEO Elon Musk to invest the company’s cash into Bitcoin back in December 2020. Had Musk listened and done so then, Tesla would have made a greater return on their Bitcoin investment and provided a better starting point for investors following along.

Bitcoin hit an all-time high of $73,750.07 on March 14, 2024.

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This article was previously published by Benzinga and has been updated.