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Tesla already made $1 billion on its Bitcoin investment

Photo of: Joseph Stone
by Joseph Stone

The automaker Tesla has no reason to regret its investment in Bitcoin. Its BTC is worth nearly $2.5 billion.

The Bitcoin adventure has had a happy ending for Tesla so far. In early February, the car manufacturer invested $1.5 billion in cash in the cryptocurrency. It also accepted payment for its vehicles in crypto.

These announcements contributed in particular to the rise in the price of Bitcoin. A good operation for an investor. Tesla’s BTC capital has since risen significantly, as it has for MicroStrategy.

According to the first quarter financial results reported to the SEC, Tesla held the equivalent of $2.48 billion in Bitcoin. That makes its initial investment worth a billion.

It’s even more, in truth. Tesla has in fact sold 10% of its Bitcoin during the first quarter. This transaction was worth $ 272 million net to the manufacturer. The manufacturer now holds less BTC, but for a much higher value.

However, the company’s business remains the construction of electric cars and not speculation. “Tesla sold 10% of its holdings primarily to prove the liquidity of Bitcoin as an alternative to holding cash on its balance sheet,” says Elon Musk.

But Bitcoin is also a boost to its core business. The quarterly results highlight that Tesla took in $101 million net from BTC payments. That figure includes $128 million in sales – $27 million in impairment losses on Bitcoin investment.

Unlike other merchants, Tesla collects payment directly in Bitcoin, without converting it to fiat currency. This purchase option is currently only available in the United States. Its extension to other regions is envisaged during 2021.

As for Elon Musk, he too remains a crypto investor. Unlike his company, he even assures that he has not sold any of his bitcoins. However, it is not known how many BTC the billionaire holds.

Is he also a Dogecoin investor? It is unlikely, unless he exposes himself to prosecution by the SEC. Elon Musk frequently publishes tweets whose influence on the price of DOGE is indisputable.