Tesla’s Bitcoin group made $ 1 billion in profit for the company
Tesla’s Bitcoin holdings brought the electric car maker $ 1 billion in profit, which only reveals the success of Tesla’s Bitcoin bet. We read more about it in our latest Bitcoin News.
Tesla posted a profit in the third quarter and reported a $ 51 million loss charge on BTC holdings in the most recent quarter. In the past year, Tesla CEO Elon Musk has been quite vocal about crypto on Twitter and has even driven the price of Dogecoin up in the past. That year, however, Tesla announced it had invested $ 1.5 billion in BTC. The loss fee we are referring to is a number that describes a decrease in the realizable value of an asset, and these decreases occur when the property is damaged or in the event of a drastic change such as a drop in prices.
According to its Q1 filing with the SEC, Tesla finds that its Bitcoin holdings are $ 2.48 billion, while a BTC price below $ 59,000 suggests the company holds more than 42,000 BTC. Filing indicates that the “book value” for Tesla’s BTC holdings was $ 1.33 billion at the end of the first quarter, suggesting a $ 170 million BTC sale took place and the BTC’s liquidity as an alternative to holding cash was demonstrated on balance sheet. He wrote:
“No you do not. I haven’t sold any of my bitcoins yet. Tesla sold 10% of its holdings essentially to demonstrate Bitcoin’s liquidity as an alternative to keeping cash on balance sheet.
– Elon Musk (@elonmusk) April 26, 2021“
Values fluctuate from month to month, and in SEC filings, Tesla’s Bitcoin holdings at the end of March showed a profit of $ 101 million from the sale of 10% of its holdings, which means the monetary value of the BTC sold at the time was $ 270 million . If Tesla’s BTC inventory was $ 1.33 billion after this sale and there were about 42,000 BTC left, the average initial settlement price would be $ 31,620. At that weekly high, BTC is worth around $ 63,500 today, meaning Tesla holds over $ 2.6 billion in BTC.
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