Tesla could start accepting BTC payments again
According to the third quarterly report submitted to the SEC, Tesla could resume accepting payments in cryptocurrencies.
The famous electric car manufacturer stated that during the nine months ending on September 30, the company purchased $1.5 billion in Bitcoin. Until the end of March, Tesla accepted Bitcoin as a payment method for certain products in certain regions but suspended the practice in May 2021.
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing Bitcoin transactions,” said Musk in a tweet.
The case reported that the “fair market value” of Tesla’s digital assets as of September 30 was $1.83 billion. The company added:
“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash,”
Tesla made $1.3 billion from BTC
In its third-quarter financial report, Tesla reported that it had to bear a $51 million depreciation fee to account for its existing holdings in BTC.
Digital asset accounting rules provide that if the price of an asset falls during the period, the company must report it as an impairment loss. However, if the price increases, it is not registered as again on the balance sheet. Bitcoin prices ranged from $30,000 to $52,700 during the quarter but ended at $41.5K.
Following Tesla’s entry into Bitcoin earlier this year, the company sold 10% of its holdings in Q2, which increased its quarterly earnings by $272 million.
According to Bitcointreasures, Tesla currently holds about 43,200 BTC worth about $2.7 billion at current prices. Even after selling 10% of its stock, the company made an unrealized profit of nearly $1.3 billion from that investment.
Tesla is the second-largest holder of Bitcoin, right after MicroStrategy, which holds about 114,000 BTC worth about $7.4 billion at current prices. The payment company Square is third on the list with nearly 8,000 Bitcoin.
Environmentally friendly Bitcoin will be accepted
In July, Tesla CEO Elon Musk said Tesla would accept cryptocurrency as a payment method when Bitcoin mining uses more than 50% renewable energy.
“But as long as there is a conscious and determined, real effort by the mining community to move toward renewables, then obviously Tesla can support that.”
Since the Chinese exodus, which relied heavily on coal-fired energy for mining, the trend has increased. Most of the recently relocated Bitcoin mining operations in the United States use renewable energy.
Tesla and its CEO, Elon Musk, have been long-time supporters of cryptocurrencies in general, especially Bitcoin. On the other hand, Musk is a huge fan of renewable energy. Thus we are most likely going to see lots of news about the company accepting Bitcoin payments again, as long as everything is as environmentally friendly as possible, using as much green energy as they can.
With this piece of news, we might see another jump in BTC prices and, most likely, in Tesla and Elon Musk’s other companies’ shares as well. The future looks bright – the market is trading steadily at the moment, and we are seemingly in a bull run that will likely continue if we continue to see such headlines.
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