Tesla’s backing of Bitcoin boosts share prices of existing investors


Tesla Inc‘s (NASDAQ:TSLA) US$1.5bn investment in Bitcoin, revealed on Monday, has provided not only a boost for the price of the cryptocurrency but also for a collection of firms that backed the digital token well before the electric car maker.

One such firm, software specialist MicroStrategy Inc (NASDAQ:MSTR) which is estimated to hold Bitcoin’ worth around 28% of its market cap, has seen its shares rise around 37.5% since Tesla’s disclosure, while Marathon Patent Group Inc (NASDAQ:MARA), estimated have a Bitcoin holding at 6.5% of market cap, has risen 39.5% in the same period.

READ: Bitcoin surges to fresh highs as Elon Musk’s Tesla unveils investment

Other Bitcoin investors that have been buoyed by Tesla’s move are Vancouver-based Mogo Inc (TSE:MOGO), which owns Bitcoin equivalent to around 0.4% of market cap and has jumped 75.6% so far this week, while US payments firm Square inc (NYSE:SQ), with a 0.2% market cap equivalent of Bitcoin, has climbed 5.3%.

Of course, one of the biggest winners has been Bitcoin itself, which has notched up fresh records and as of lunchtime trading in London on Wednesday was at US$46,374, 28% higher than it was a week ago.


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