Tesla now holds nearly $2 billion in Bitcoin. A year after its massive investment, Elon Musk’s firm has managed to generate significant profits by reselling, at the right time, some of its cryptocurrencies.
The relationship between Tesla and Bitcoin has been tumultuous over the past year. In February 2021, Tesla has accepted bitcoin payments for its US customers. It was possible to buy an electric car from the brand by paying cryptocurrencies instead of dollars.
Under pressure from shareholders, Elon Musk finally reversed his decision, citing environmental concerns. The billionaire has pledged to accept Bitcoin payments as soon as mining shifts to majority green and renewable energies.
Tesla sold some of its bitcoins in 2021
In partnership with Michael Saylor, CEO of MicroStrategy and fervent defender of Bitcoin, and several players in the sector, Musk has also embarked on initiatives aimed at produce digital assets while respecting the environment. Still convinced of the future of the currency, Elon Musk has pledged that Tesla will accept Bitcoin again in July, but the CEO’s words have yet to be followed by action.
At the same time, in early February 2021, Tesla revealed that it had invested $1.5 billion of its cash in the queen of cryptocurrencies. This announcement gave a boost to Bitcoin prices. Boosted by the massive investment of the automobile firm, the price had exceeded 40,000 dollars before rising, a few months later, to the gates of 70,000 dollars. The price of Bitcoin recently contracted around $40,000.
A year after buying BTC, Tesla gave an update on its investment, reveals a report filed with the SEC, the US federal financial market regulator. The report shows that the group now holds $1.99 billion in bitcoins.
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In the repository, we also learn that Tesla sold some of its bitcoins in order to generate profits. “We realized gains of $128 million in connection with the sale of a portion of our holdings in March 2021”, Tesla told the SEC. The automotive firm took advantage of the rise in the price of BTC to reap nice profits. Tesla refers to the sale as a “liquidity test” aimed at ensuring that the market does not react negatively to such large transfers.
