Tesla Still Holds $218 Million in BTC holdings – Company’s Q3 Revenue Report
- According to Tesla’s latest Q3 revenue report, it did not sell or buy bitcoin in the third quarter.
- Despite buying Bitcoin equivalent to about $1.5 billion in February 2021, the car manufacturer reduced its Bitcoin holdings drastically by the second quarter of this year.
- Tesla CEO Elon Musk hinted in Tesla’s second-quarter earnings report that the sale was caused by “COVID lockdowns in China.”
- Tesla has entered the list of the largest institutional Bitcoin holders with $218 million worth of BTC.
As part of its latest Q3 revenue report, Tesla revealed it did not sell nor buy Bitcoin holdings in the third quarter and has $218 million in Bitcoin.
Recall that the car manufacturer bought Bitcoin holdings, equivalent to about $1.5 billion, in February 2021. In turn, this led to a positive impact on the value of cryptocurrencies. Shortly after, Tesla, in the first quarter of that year, reduced its bitcoin exposure by selling 10% of its holdings. This sale enhanced its first-quarter earnings by $272 million.
In the second quarter of the current year, the car manufacturing firm again sold 75% of its Bitcoin holdings, equivalent to over $936 million during that time. The sale consequently left Tesla with $222 million worth of BTC on its balance sheet.
Tesla May Increase Its Exposure to BTC in the Future – Elon Musk
Tesla CEO Elon Musk hinted in Tesla’s second-quarter earnings report that the sale was due to “the uncertainty of the COVID lockdowns in China.” However, the billionaire revealed that the firm might boost its bitcoin exposure in the future. According to him, the sale “should not be taken as some verdict on bitcoin.”
Meanwhile, Tesla revealed in its recent report that it realized a $64 million gain through the sale of its holdings in the second quarter. However, it was offset by impairment charges, amounting to about $170 million on the remaining holdings, thereby resulting in a net cost of $106 million on its profit and loss statement.
With $218 million worth of BTC holdings, Tesla joins the list of the largest institutional holders of Bitcoin. Currently, MicroStrategy holds about 130,000 BTC, equivalent to about $2.48 billion. Galaxy Digital Holdings is not left out in this regard, holding 40,000 BTC, amounting to more than $767 million.
As of press time, the shares of the car manufacturer Tesla are up by about 1.85%.
On the Flipside
- While Tesla is one of the largest investors in Bitcoin, it stopped accepting Bitcoin as payment for its cars last year, citing climate concerns.
Why You Should Care
Despite harsh market conditions, the car manufacturing company has not given up on Bitcoin yet. Due to Tesla’s strong position in the BTC holdings, this could have a positive impact on BTC’s price in the future.
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Read more: https://dailycoin.com/tesla-still-holds-218-million-in-btc-holdings-companys-q3-revenue-report/
Text source: DailyCoin.com
