Q1 earnings show Tesla sold off $272 million of its BTC purchase

advertisement

After putting bitcoin on its balance sheet earlier this year, electric vehicle maker Tesla sold off $272 million of its holdings. Its Q1 2021 earnings report shows the sum under "proceeds from sales of digital assets."

Tesla first bought $1.5 billion in BTC in February of this year, according to a disclosure filing with the Securities and Exchange Commission. Crypto exchange Coinbase facilitated the purchase. The $272 million sale would leave at least $1.33 billion in BTC on Tesla's balance sheet according to the price at the Feb. 8 transaction. At this point that figure would be higher given price movements, but filing rules don't allow for Tesla to adjust the figure to the upside.

Last month, the firm also announced it would accept payment in bitcoin. Musk said Tesla would retain those payments in their digital asset form, and forego converting them to fiat.

In Tesla's earnings call, Chief Financial Officer Zach Kirkhorn said that "Tesla is watching how the market develops and listening to what our customers are saying but thinking about it from a corporate treasury perspective, we've been quite pleased with how much liquidity there is in the Bitcoin market." Kirkhorn also added that Tesla "believe, long term, in the value of Bitcoin, so it is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles."

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More