Tesla Holds $312 Million Worth of Bitcoin
In the third quarter of 2023, Tesla confirmed that it did not sell any of its $312 million worth of Bitcoin. This means that Tesla’s Bitcoin holdings have remained unchanged for five consecutive quarters. The last time Tesla sold Bitcoin was in the second quarter of 2022 when over 30,000 Bitcoin were sold for approximately $936 million. Earlier this year, the Wall Street Journal reported that SpaceX, another company led by Elon Musk, sold $373 million worth of Bitcoin between 2021 and 2022. However, the exact amount of Bitcoin that SpaceX currently holds remains unknown.
Tesla Reports Impressive Earnings and Focus on AI
Aside from its Bitcoin holdings, Tesla also reported earnings of $23.35 billion in the third quarter of 2023, showing a growth of 9% compared to the same period last year. Despite the challenging economic environment and supply chain disruptions caused by the pandemic, Tesla’s earnings have continued to grow. The company also highlighted its increasing investment in AI development. Tesla is now using AI for various purposes, including its self-driving cars, energy storage products, and manufacturing processes.
Entities Continue to Hold or Increase Bitcoin Holdings
Despite the market downturn, many entities are still holding or even increasing their Bitcoin holdings. For example, MicroStrategy acquired an additional 5,445 BTC between August and September 2023, equivalent to over $150 million. As of October 2023, the top institutional holders of Bitcoin are Galaxy Digital Holdings, MicroStrategy, Marathon Digital Holdings, Coinbase, and Tesla. On the other hand, some companies like Meitu have announced plans to sell their crypto holdings and shift their focus to AI.
Elon Musk’s Concerns about Interest Rates
Elon Musk expressed concerns about the global economic outlook and its impact on his businesses. He emphasized the importance of reducing production costs and lowering the prices of Tesla’s electric vehicles. Musk highlighted that higher interest rates make it harder for people to afford cars due to increased monthly payments. The U.S. Federal Reserve has raised interest rates multiple times to combat inflation, and further rate hikes are expected in the future. However, Bitcoin has not shown a significant reaction to macroeconomic and monetary policy news, although regulations and economic conditions may influence market sentiment over time.
Hot Take: Bitcoin Halving and SEC Decision Awaited
Crypto enthusiasts are eagerly awaiting the Bitcoin Halving in 2024, which historically has had a bullish effect on Bitcoin prices due to reduced supply. Additionally, the decision of the U.S. Securities and Exchange Commission (SEC) regarding Bitcoin spot exchange-traded funds (ETFs) is highly anticipated. While interest rates and inflation are concerns for the economy, these upcoming events have the potential to shape the future of the crypto market.
By
By
By