Electric vehicle manufacturer Tesla has submitted its first quarterly report for 2021. According to him, the value of the Bitcoin owned by the company is over $ 2 billion.
Almost $ 2.5 billion in Bitcoin
Tesla has submitted its newest report quarterly at the US Securities and Exchange Commission (SEC). It presents the company’s financial statement. Tesla’s Bitcoin wallet was included in this report. This is a new item on its balance sheet as the company recently transferred a significant portion of its capital to BTC.
As of March 31 this year. Tesla’s Bitcoin value was $ 2.48 billion. The company also recorded a net profit of $ 101 million on digital assets it holds. Tesla posted a $ 128 million profit from selling approximately 10 percent of its total stake in BTC. It also settled a $ 27 million loss after calculating the impairment losses on certain BTCs.
Musk explains the sudden sale of BTC
It is widely believed that Tesla’s decision to start investing some of its capital in Bitcoin was influenced by MicroStrategy. The company’s CEO, Michael Saylor, is the biggest supporter of Bitcoin, and in mid-2020 he started an institutional trend, commonly known in the crypto world as the “MicroStrategy Effect”.
Saylor at the end of last year offered to share his BTC knowledge with Tesla CEO Elon Musk. A few months later, an electric vehicle manufacturer revealed sizeable purchases.
In recent months, Musk has also become a strong supporter of the foundations behind an investment in Bitcoin. For this reason, the news that Tesla has sold 10 percent of its stake in BTC has created uncertainty among the community. Especially considering that the company has introduced BTC payment options for its cars and has stated that it will farm the coins obtained from their sale. Tesla’s CEO gave a brief explanation of the reasons for selling Tesla’s Bitcoins.
Well, you don’t. 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