Tesla’s Bitcoin (BTC) holdings were barely afloat amid the global crypto decline. Tesla had bought $1.5 billion worth of BTC at approximately $35,000 at the beginning of 2021. However, they sold 10 percent, i.e., over $270 Million in the first quarter during the month of April when BTC was priced at $55k. Nevertheless, now that BTC stands strong near the $40k price mark, Tesla’s holdings are back in profit estimated to be close to $1.47 Billion after the 10-Q SEC filing.
The highly profitable price bracket was confirmed when Tesla’s CEO, Musk replied to a long-time $TSLA investor’s tweet on the evaluation of Tesla’s present BTC holding value. The tweet estimated the holdings to be at $1.47 Billion to which Musk replied, partially accepting the analysis.
We don’t have that many Bitcoin, but it’s close
— Elon Musk (@elonmusk) July 28, 2021
Why did Tesla sell 10 percent BTC Holding?
Musk and Tesla’s relationship with BTC this year has been a roller-coaster ride. Musk defended the liquidity of BTC when Tesla sold 10 percent of its $1.5 billion BTC holding, arguing that the move to sell a small portion from Tesla’s BTC portfolio was to prove market liquidity and promote Bitcoin as a replacement of cash in terms of liquidity.
No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
— Elon Musk (@elonmusk) April 26, 2021
Tesla’s BTC payment controversy
Following Musk’s consistent Twitter promotions of BTC as a replacement for traditional currency, Tesla announced it will accept BTC payments. The announcement was unsurprising; however, the May rollback came as a shock to the Bitcoin community. Tesla stated that being an eco-conscious organization itself, it cannot accept the high energy-consuming product of BTC mining.
The recent Bitcoin Mining Council (BMC) report revealed an approximately 56% hike in sustainable energy consumption by the global Bitcoin mining industry, making it one of the most sustainable industries.
Musk at the B-Word Conference
Recently, at the B-Word conference, Elon Musk revealed both his companies, SpaceX and Tesla are currently holding Bitcoin (BTC), which also extends to Musk himself. Furthermore, Tesla CEO, Musk announced that if Bitcoin becomes more eco-conscious then Tesla would go back to accepting Bitcoin as a mode of payment.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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