Tesla Maintains its Bitcoin Holdings
In Tesla’s Q3 2023 financial report, it is revealed that the company did not engage in any Bitcoin trading or selling activities over the past three months. As of September 30, Tesla still holds approximately 9,720 BTC, valued at around $275.6 million based on current market rates. This marks the fifth consecutive quarter that Tesla has maintained its Bitcoin holdings without making any changes.
Tesla’s Stock Declines
Despite the news about Tesla’s Bitcoin holdings, the company’s stock faced a 4.78% decline after the market closed today, with shares valued at $242.68 each. Additionally, Tesla reported revenue of $23.35 billion for the third quarter, slightly below the estimated $23.9 billion projected by analysts. The company also fell short of expectations with adjusted earnings of 66 cents per share instead of the expected 73 cents per share.
Tesla’s Initial Bitcoin Investment and Subsequent Sales
In early 2021, Tesla invested $1.5 billion in Bitcoin and acquired 43,000 BTC at an estimated price of approximately $34,000 per coin. They also started accepting Bitcoin as a payment option for their vehicles and products. However, concerns about the environmental impact of Bitcoin mining led CEO Elon Musk to sell 4,320 BTC from Tesla’s holdings, resulting in a $101 million impairment loss.
In the second quarter of 2022, Tesla reportedly disposed of 75% of its Bitcoin holdings due to uncertainties surrounding COVID lockdowns in China and the need to bolster cash reserves. Since then, Tesla has maintained its stance on holding Bitcoin without making any further changes.
Hot Take: Tesla Remains Steadfast in Holding Bitcoin
Tesla’s Q3 2023 financial report confirms that the company has not traded or sold any Bitcoin in the past three months. Despite concerns and market fluctuations, Tesla continues to hold its Bitcoin holdings, signaling its long-term commitment to the cryptocurrency. This decision aligns with Tesla’s previous actions of investing in Bitcoin and accepting it as a payment option. While Tesla’s stock faced a decline, the company’s focus on maintaining its cryptocurrency holdings showcases its belief in the potential and value of Bitcoin.
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