“Tesla Holds onto its Bitcoin Holdings in Q3 Earnings Report“
In the latest third-quarter earnings report from Tesla, it has been revealed that the company did not sell any of its Bitcoin (BTC) holdings in the last three months. As of September 30th, Tesla still holds approximately 9,720 BTC, which is valued at around $275.6 million. The absence of any mention of BTC in the Q3 report indicates that there was no conversion of the digital currency to fiat currency during this period.
Tesla initially invested $1.5 billion in Bitcoin earlier this year and bought 43,000 units at an average price of $34,000. This move coincided with Tesla’s decision to accept BTC as a payment option for its products.
After facing criticism about the environmental impact of Bitcoin mining, CEO Elon Musk decided to sell off 4,320 BTC from Tesla’s holdings. This led to a drop in BTC’s value and a $101 million impairment loss for Tesla. In Q2 2022, Tesla sold 75% of its Bitcoin holdings to maximize its cash position.
Since then, Tesla has maintained its Bitcoin holdings and has not made any further sales according to the Q3 2023 report.
Hot Take: Tesla’s decision to hold onto its Bitcoin holdings in Q3 indicates a change in strategy after previous sales impacted profitability. Despite concerns about environmental impact and market volatility, Tesla seems committed to maintaining its digital asset portfolio for now.
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