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Tesla keeps all of its $218 million in Bitcoin

tesla bitcoin

The latest report on electric car maker Tesla shows us that there is no without touching their assets for the third trimester. Quite the opposite, in the second quarter, which the company had done massive sale of his Bitcoin reserve. What does that mean?

Record second quarter sales for Tesla

In February 2021, Tesla’s megalomaniac boss, Elon Musk, announced purchase of $1.5 billion in Bitcoin (45,000 BTC) by his company. At that time, the flagship digital asset was on course for an unprecedented promotion. In fact, Bitcoin had reached a The highest level was $68,992 for any sign. The billionaire said he wanted to “diversify your cash flow” as well as giving its customers the possibility to pay for their cars in crypto. However, Musk was reticent because “environmental causes“.

In the second quarter of 2022, Tesla made a 180 ° turn by making a decision sold 75% of their Bitcoin holdings. The reasons given by the whimsical entrepreneur were those of him Pandemic covid-19 in China. For him, the situation was very uncertain and “It was therefore important for us to maximize our cash position”. However, Musk clarified that this should not be seen as a verdict on the star digital asset. This operation brought in no less than $936 million for the electric car company.

The firm had already sold nearly 10% of its BTC digital assets in the first quarter of 2022. That was $272 million at the time. Tesla had made a profit of 101 million dollars because of this maneuver.

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A quiet third quarter for Tesla

Today, according to the company’s third quarter report, Tesla is $218 million in digital assets. In this balance sheet published on October 19, there appears to be no loss in the value of its reported assets. Based on the current prices of Bitcoin, it can be estimated that the amount of Elon Musk’s company is approximately 9,720 BTC.

A new episode in the soap opera of the sale of Twitter, the billionaire has announced that he is trying again buy a social network. The hypothesis is sale of digital assets to finance this purchase still unlikely. Indeed, after a very harsh crypto winter, Bitcoin seems to be heading for a sunnier period. It would therefore be wise to wait for the asset to be repaid before selling everything now.

Rumors suggest that if the billionaire takes over Twitter, he could set up an in-app crypto payment system thanks to the Lightning Network. Jack Mallers, CEO of the Strike app, said:

If I were Elon Musk, I had a global audience in a global network (Twitter), what would stop me from letting my users pay with their phone at Starbucks? What’s stopping me from transferring money through Twitter? Elon Musk has an opportunity to build payment systems not traditionally available to Twitter. »

The Binance exchange said it backs Elon Musk’s takeover up to $500 million.

At the time of writing this article, the price of Bitcoin is relatively stable as it has only experienced a very small drop of 0.05% in the last five days. She was The current value is $19,586. However, many investors see it coming end of crypto winter and predict a meteoric rise in the coming days. BTC seems to have been reached strong threshold of resistance. There are naysayers, however, who predict the digital asset will fall below $12,000.

Dogecoin as a payment method

The electric car company Tesla now offers its customers an opportunity pay with Dogecoin since last January. The Space X site, which offers derivative products such as clothing, also accepts payments with the digital asset.

One of the products that Tesla put on sale in September was a limited edition whistle reminiscent of the Tesla Cybertruck car. This one could only be purchased with DOGE, at the price 1,000 DOGE, or about 60 dollars at a time. It is not clear how many units went on sale, but it reportedly sold out within hours.

Elon Musk doesn’t rule out the possibility one day pay for the Starlink subscription with the famous Coin meme. In fact, he would have responded to a user who asked him the question: “It will be one day“.

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