Tesla Still Holds $218 Million in BTC Holdings – Company’s Q3 Revenue Report

tesla bitcoin
  • According to Tesla’s latest Q3 revenue report, the company neither sell nor purchased any bitcoin in the third quarter.
  • Despite buying bitcoin equivalent to approximately $1.5 billion USD in February 2021, the car manufacturer drastically reduced its bitcoin holdings in the second quarter of the year.
  • In Tesla’s second-quarter earnings report, CEO Elon Musk hinted that the sale was made necessary by “COVID lockdowns in China.”
  • Tesla remains among the largest institutional bitcoin holders, with $218 million worth of BTC.

As part of its latest Q3 revenue report, Tesla revealed it had neither sold nor purchased any further bitcoin in the third quarter of 2022, and retains $218 million worth of the leading digital asset.

The electric car manufacturer previously acquired Bitcoin holdings equivalent to approximately $1.5 billion USD, in February 2021, leading to a positive impact on the value of cryptocurrencies. Shortly thereafter, in the first quarter of that same year, Tesla elected to reduce its bitcoin exposure by selling 10% of its holdings. The sale enhanced the company’s first-quarter earnings by $272 million.

In the second quarter of 2022, the car manufacturing firm again sold some of its bitcoin, but this time a whopping 75% of its total holdings, equivalent to $936 million USD at the time, subsequently leaving Tesla with $222 million worth of BTC on its balance sheet.

Tesla May Increase Its Exposure to BTC in the Future – Elon Musk

In Tesla’s second-quarter earnings report, CEO Elon Musk suggested that the sale was due to “the uncertainty of the COVID lockdowns in China.”  However, the billionaire also affirmed that the firm could look to once again boost its bitcoin exposure in the future, stating that the sale “should not be taken as some verdict on bitcoin.”

Tesla has since revealed in a recent report that it realized a $64 million profit through the sale of the significant portion of its bitcoin in the second quarter. However, these gains were offset by impairment charges on its remaining holdings, amounting to aproximately $170 million, and thereby resulting in a net loss of $106 million on its profit and loss statement.

With its remaining $218 million worth of BTC, Tesla still features among the largest institutional holders of Bitcoin. At the time of writing, MicroStrategy holds an approximate 130,000 BTC, equivalent to $2.48 billion USD. Galaxy Digital Holdings also features, with 40,000 BTC, amounting to more than $767 million in value.

As of press time, car manufacturer Tesla’s share value is up by around 1.85%.

On the Flipside

  • While Tesla is one of the largest investors in Bitcoin, it ceased accepting Bitcoin as payment method for its cars last year, citing climate concerns.

Why You Should Care

Despite the harsh economic market conditions, Tesla has not given up on Bitcoin yet, and the firm’s strong position in terms of BTC holdings could yet have a positive impact on BTC’s price in the future.

 

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Elon Musk’s Tesla Sells 75% of Its Bitcoin in Q2, Records 32% Profit Drop from Q1

Tesla Open to Further Crypto Investments Per SEC Filing

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Soumen has been a dedicated researcher and writer in the field of cryptocurrencies for the last few years. Even though Indian crypto regulations are still unclear, he believes that India will continue to innovate in the years to come. He loves to play his guitar and sing along in his spare time. He holds bags mostly in BTC, ETH, BNB, MATIC, ADA.