Tesla Holds Steady with 9,720 Bitcoin, Worth Over $275 Million
Tesla's Q3 2023 earnings report has confirmed that the electric vehicle giant still retains its stash of 9,720 bitcoins, valued at approximately $275.6 million. The report did not indicate any conversion to fiat currency, suggesting that no bitcoin-to-fiat transaction occurred, affecting Tesla's profitability and cash balance, a practice typically disclosed in financial reports.
Tesla's bitcoin holdings were at their peak value of $1.5 billion, with the company acquiring more than 43,000 bitcoins in early 2021 at an estimated average price of around $34,000. However, Tesla sold a portion of its bitcoin treasury in the first quarter of 2021, and later offloaded about 75% of its remaining holdings in the second quarter of 2022, incurring a 48% loss.
The recent earnings report underscores Tesla's position as the third-largest holder of bitcoin among publicly traded companies. It remains unclear whether Tesla's decision to retain its bitcoin assets is based on a belief in the cryptocurrency's value or a strategy to prevent further losses on its initial investment.
Investors closely monitor Tesla's approach to its bitcoin holdings, as Elon Musk's involvement in cryptocurrencies has proven to impact the market. News of Tesla's bitcoin purchase in 2021 contributed to an all-time high in the bitcoin price. The possibility of Tesla reintroducing bitcoin payments remains a point of interest for the cryptocurrency community.