Bitcoin

Tesla Still Holds $184m Bitcoin

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EV Giant Holds Firm on $184M Bitcoin Investment

Tesla has reported no change in its Bitcoin holdings for the fourth consecutive quarter in Q2 2023. The company’s Bitcoin holdings remain steady at $184 million.

Tesla’s Initial Bitcoin Investment

Tesla’s journey with Bitcoin began in early 2021 when the company made a bold move, purchasing a HUGE $1.5 billion worth of Bitcoin. This initial investment was shortly after MicroStrategy started adding Bitcoin to its treasury. When Elon Musk asked what seemed like a passing question, MicroStrategy’s CEO Michael Saylor offered to share his playbook to purchase +$1 Billion in Bitcoin.

Elon Musk orange-pilled by Michael Saylor on Twitter

Tesla’s purchase, while not the first major allocation by a listed company, marked a significant milestone in the integration of Bitcoin into mainstream corporate finance because of the enormous global coverage it received.

Tesla Sells 75% of its Bitcoin – “No Further Transactions”

However, in Q2 2022, Tesla made headlines when it sold more than 30,000 bitcoins, accounting for roughly 75% of its total holdings, for $936 million. Despite this significant sale, the company has not engaged in any further Bitcoin transactions, maintaining its remaining holdings.

Accounting Rules and Bitcoin Valuation

Despite Bitcoin’s price rise in Q2 2023, the value of Tesla’s holdings remained flat. This is due to accounting rules that do not permit the recording of unrealized gains on digital assets. As such, even as the market value of Bitcoin increases, Tesla’s reported value of its holdings must remain unchanged, though this industry reporting standard is expected to be brought into line with other assets soon.

Musk’s Openness to Future Bitcoin Investments

Tesla’s CEO, Elon Musk, has previously expressed his openness to increasing the company’s Bitcoin holdings in the future and to also start accepting Bitcoin for sales of Tesla vehicles, pending a sustained increase of 50% or more renewable energy used by Bitcoin miners in the overall energy mix.

Despite his promise, Tesla is yet to start accepting Bitcoin payments again. 🤔

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