Friday, March 29

Tesla Confirms It Remains a Bitcoin Holder, With More Than $1 Billion in Cash | Bitcoin Portal


Tesla continues to hold on to its bitcoin balance sheet acquired nearly a year ago.

Confirmation came in report earnings release released Wednesday, which shows the value of Tesla’s bitcoin holdings unchanged from the end of the previous quarter at around $1.26 billion.

Elon Musk’s electric car maker did not sell, but also did not buy, any bitcoins in the quarter. In addition, it did not record losses when exposing the cryptocurrency since, in the general scenario, the price of BTC was stable between the last two quarters of 2021.

Tesla’s bitcoin balance sheet (Source:Tesla/Bitcoin.com)

Under rules imposed by US regulators, a publicly traded company is required to disclose the damage caused by the fall of an asset it insures. In the third quarter, for example, Tesla recorded a loss of $51 million from the devaluation of BTC.

It is worth remembering that the balance sheet released by the company this week does not take into account the strong price correction that bitcoin has been facing in January, the month in which it accumulates losses of 25%.

Tesla never revealed how much bitcoin it has in cash beyond its dollar equivalent, but Musk has already suggested in the past the balance is just under 42K BTC.

Tesla’s Bitcoin Cash

Tesla bought the equivalent of $1.5 billion worth of bitcoin in February last year, helping push the coin to a new price record of $44,000 at the time.

That first quarter, the company sold 10% of its bitcoin holdings, making a profit of $272 million. The sale was justified by the company as a way to test the currency’s liquidity.

At that time, fears took hold in the industry that Tesla would lose faith in cryptocurrency, as the company had also reversed its decision to accept it as a form of payment.

But in the following months, Elon Musk assured on different occasions that the bitcoin position would remain stationary. In July, the billionaire even claimed that in addition to Tesla, SpaceX and himself also had investments in bitcoin.





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