Tesla did not sell its bitcoins
Tesla’s financial report for the first quarter of 2022 confirmed that Elon Musk’s company has retained its digital assets (consider “bitcoins”) at the same level.
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The company purchased about 43,200 BTC tokens worth $1.5 billion in 2021. Over the next 4 quarters, the company did not add or sell its cryptocurrency. The dollar value of bitcoins owned by Tesla also changed slightly.
Some floating loss of this investment resulted from the current correction of the crypto market. Despite this, bitcoin can be considered as a good long-term risk diversification method for Tesla.
At the same time, Elon admitted that such an investment of money is eccentric and “risky” for a company that is one of the leaders in the S&P500 industrial index. But he couldn’t resist mocking the fiat economy, writing that “having some bitcoin is a slightly less stupid form of liquidity than cash”:
For Elon Musk, the last year looks like a solid showtime: the period of losses for his car company has long since passed, it’s showing excellent results for investors in quarterly reports, and the billionaire himself is a candidate for the status of the first person in history with a trillion-dollar net worth.
Also, Musk objectively remains one of the most influential figures for the crypto industry. At the time, it was the purchase of bitcoins on the official Tesla balance that became the trigger for the rise in price of the world’s main cryptocurrency by more than $10,000. Musk was also involved in the subsequent recession, in relation to his words about the too large “carbon footprint” of bitcoin mining, which allegedly did not allow Tesla to accept BTC as a means of payment.
At the peak of the market price (about $58,000 for Bitcoin), Tesla showed no willingness to take profits, so today investors should hardly worry about the risks of Musk’s sell-off, when the price of bitcoin is almost $20,000 lower.
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