Tesla Report Shows Bitcoin Positions Unchanged At $1.2 Billion
Elon Musk, and by extension Tesla, have been one of the biggest proponents of bitcoin. The automaker led by the billionaire was a major push in the initial bitcoin run to a new all-time high in May 2021. This was due to the EV maker announcing it would accept BTC as a payment method for its cars. .
Not long after, the company has withdrawn its decision to accept the digital asset as a means of payment, citing environmental considerations as the reason for this. However, it did not explicitly return from bitcoin as it made investments in the asset. In a recently released financial report from the company, Tesla reveals that it is continuing to hold BTC it bought last year.
Tesla has not increased Bitcoin positions
Elon Musk had revealed at ‘The B Word’ conference last year that Tesla, the company he runs as CEO, had bitcoin on its balance sheet. While most weren’t surprised, it was still a newsworthy revelation and the subject of numerous headlines. Musk had also revealed that the company had no intentions to sell the BTC and would hold it.
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Since then, it appears the company is sticking to its decision not to sell, but it hasn’t increased its stake in the digital asset either. Financial reports from the company revealed that Tesla did not purchase any new bitcoin in the last quarter of 2021.
BTC trending higher post-crash | Source: BTCUSD on TradingView.com
It also didn’t record any write-downs in the same period as it did in the third quarter of the year, where it had to report a $51 million write-down on its bitcoin holdings. The value of the investment had remained stable as the value of BTC did not fluctuate much during this period. The company was worth $1.2 billion for the quarter, marking gains on investments it made earlier in the year.
Don’t rule out crypto payments
When Tesla announced that it was halting bitcoin payments, a clause was added that would allow the company to resume BTC payments. Musk had explained in a tweet that once bitcoin mining reached 50% renewable energy, it would resume payments.
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However, this has yet to happen, but Tesla has not completely ruled out cryptocurrency payments. Company officially started accepting meme coin Dogecoin, a favorite of CEO Elon Musk, as payment for Tesla merchandise. It explained that it will use this as a test run to see how Dogecoin payments would work on its platform. All items listed for Dogecoin payments sold out quickly after the announcement.
Tesla remains the second publicly traded company with the largest bitcoin holdings, behind MicroStrategy and its massive stock of over 120K BTC.
Featured image from TechBooky, chart from TradingView.com