On Wednesday, February 18, EV giant Tesla (NASDAQ: TSLA) filed its quarterly financial report which shows that the company continues to hold its Bitcoins firmly. Currently, Tesla holds 9,720 Bitcoins on its balance sheet worth over $275 million as of the current price. Over the past few quarters, Tesla has kept its Bitcoin holdings unchanged.
Tesla’s Bitcoin Bet
The development can give confidence to long-term investors looking to add more to the kitty. The macro developments and the current Bitcoin price movements have kept investors on the edge thinking about the next directional movement.
Tesla added a staggering $1.5 billion worth of Bitcoins back in February 2021, when the BTC price was trading at $34,000. Later, after Tesla’s purchase, the Bitcoin price surged all the way to hitting its all-time high of $69,000 by the same year-end.
However, Musk’s stance appeared to shift shortly after, expressing concerns about the environmental impact of bitcoin mining powered by fossil fuels. Consequently, Tesla sold a portion of its treasury holding, consisting of 4,320 BTC, in the first quarter of 2021. Subsequently, in the second quarter of 2022, the company divested approximately 75% of its remaining bitcoin at a 48% price loss.
Will Tesla Add More?
Tesla is currently the third-largest public holder of Bitcoins in the globe. On the other hand, Tesla CEO Elon Musk is also optimistic about the future of BTC and sees it as a potential hedge against fiat currencies.
Recommended Articles
However, the current report doesn’t make it clear regarding the conviction of Tesla holding the crypto. But considering the developments around spot Bitcoin ETF, more institutional money is likely to flow in, and Tesla wouldn’t want to miss the bus.
On the other hand, the stick inflation, rising interest rates, etc. bring a lot of uncertainty into the US economy with growing anticipation of a possible recession and slowdown ahead. In such a case, holding more BTC on the balance sheet could provide companies with a hedge against the concerning macros.
Investors closely monitor Tesla’s actions regarding its bitcoin holdings, well aware that Musk’s involvement in cryptocurrencies has a documented history of influencing the market. Thus, any positive commentary on adding Bitcoins by Tesla could propel the cryptocurrency to a new all-time high.
- XRP Price Prediction As Ripple Partners With Uphold To Enhance Infrastructure and Liquidity
- Binance Pushes Back on CFTC Lawsuit with New Filing
- Solana Price Pumps 35% In A Week, Here’re The Levels To Consider Before The Bull Run
- Why MicroStrategy Boss Michael Saylor Is So Bullish On Bitcoin?
- Cardano Price Prediction As Changes In Staking Parameters Take Effect, Signalling Move To $1?
- Three Volatile Cryptos To Watch This Week Are Monero (XMR), El Hippo (HIPP), Avalanche (AVAX)
- Solana Price Prediction Signals 20% Rally Ahead, But There’s a Catch
- XRP Price Prediction As Buyers Edge Closer to a 16% Jump
- Polygon Price Prediction: Will Fast-Recovering $MATIC Price Hit $0.7?
- Pepe Coin Price Prediction: Early Signs of Trend Reversal Hints Rally to $0.000001
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: Sara Bowers
Last Updated: 1698185522
Views: 1163
Rating: 4.1 / 5 (89 voted)
Reviews: 85% of readers found this page helpful
Name: Sara Bowers
Birthday: 1917-06-19
Address: 1391 Karen Canyon Suite 359, Lake Hollyberg, CT 64933
Phone: +4092612200614794
Job: Marketing Manager
Hobby: Rowing, Photography, Web Development, Tea Brewing, Singing, Rock Climbing, Ice Skating
Introduction: My name is Sara Bowers, I am a venturesome, striking, skilled, accessible, cherished, talented, resolute person who loves writing and wants to share my knowledge and understanding with you.