Tesla Report Shows Bitcoin Holdings Remain Unchanged At $1.2 Billion
28 January 2022 - 4:00AM
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Elon Musk, and by extension, Tesla, have been one of the biggest
proponents of bitcoin. The automotive manufacturer which is headed
by the billionaire had been a big push in the first bitcoin run-up
towards a new all-time high in May 2021. This had come as a result
of the EV manufacturer announcing that it would be accepting BTC as
a payment method for its cars. Not too long after, the company had
repealed its decision to accept the digital asset as a method of
payment, citing environmental concerns as the reason behind this.
However, it did not explicitly back away from bitcoin as it made
investments into the asset. In a recently released financial report
from the company, Tesla reveals that it continues to hold on to it
BTC that it had purchased last year. Tesla Did Not Increase Bitcoin
Holdings Elon Musk had revealed last year during ‘The B Word’
conference that Tesla, the company which he runs as CEO, held
bitcoin on its balance sheet. While most were not surprised, it was
still a news-worthy revelation and was the subject of countless
headlines. Musk had also revealed that the company had no
intentions of selling the BTC and would hold onto it. Related
Reading | Has Bitcoin Reached Its Bottom? Analyst Says It
Still Has A Long Way To Go Since then though, it seems the company
has stuck to its decision to not sell but it had not increased its
holdings in the digital asset either. Financial reports from the
company showed 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 did not record any impairments in
the same time period as it did in the third quarter of the year
where it was to report impairment of $51 million on its bitcoin
holdings. The value of the investment had remained flat given that
the value of BTC did not fluctuate much during this time. Its
holdings sat at a value of $1.2 billion for the quarter, marking
profits on the investments it had made earlier in the year. Not
Ruling Out Crypto Payments When Tesla had announced it was stopping
bitcoin payments, it had come with a clause that would see the
company resume BTC payments. Musk, in a tweet, had explained that
once bitcoin mining reached 50% renewable energy, then it would
resume the payments. Related Reading | Bitcoin Leverage: Lack
Of Liquidations Could Indicate Another Wave Of Selling This is
still yet to happen though but Tesla has not ruled out
cryptocurrency payments entirely. The 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 were quickly sold
out following the announcement. Tesla remains the second publicly
traded company with the largest bitcoin holdings, coming behind
MicroStrategy and its enormous stash of more than 120K BTC.
Featured image from TechBooky, chart from TradingView.com
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