How Elon Musk’s Tesla Takes a HODL Position on Bitcoin
Tesla Bitcoin (BTC) holdings remain steady at $184 million. As of December 2022, this has not changed.
Under the leadership of Elon Musk, Tesla Inc. He has shown a steady hand in his Bitcoin strategy. The company's fourth quarter 2023 earnings report confirms this.
Tesla Bitcoin Strategy: No New Buys, No Sells.
The company's Q4 report shows that there have been no new purchases or sales of Bitcoin since December 2022. This indicates a period of inactivity in the Tesla crypto investment.
According to CoinGecko, the electric car company currently holds around 10,500 BTC. This ranks fourth among public companies with the highest Bitcoin investments.
Read more: Who will have the most Bitcoins in 2024?
Tesla's Bitcoin journey kicks off in February 2021 with a significant investment of $1.5 billion. Initially, the company received about 42,000 BTC. This move has been a major talking point in financial circles, highlighting the growing demand for cryptocurrencies.
However, the company's stance on Bitcoin has seen changes. It initially accepted BTC for payments in March 2021. However, this was short-lived, as Tesla reversed this decision in May 2021 and reduced its Bitcoin holdings. Later, it dropped a significant 75% of BTC in losses.
The value of Tesla's bitcoin investment has fluctuated with the market. In Q2 2022, Tesla filed a $170 million impairment charge against its Bitcoin assets. This is an accounting rule for crypto assets, these assets must be written down if their market value is below the purchase price. Gains are recorded only when appreciated assets are sold.
Read more: Bitcoin price prediction for 2024/2025/2030
Elon Musk's personal view on Bitcoin is also in the spotlight. He recently shared his mixed feelings about Bitcoin on X (Twitter). He sees potential in cryptocurrencies for use cases on Mars. But he expressed frustration at the Bitcoin arguments on the X site.
“If we get into annoying Bitcoin arguments, I'll sign off,” Musk said.
Tesla's Bitcoin strategy remains a key point of interest for investors, crypto enthusiasts, and market analysts alike as they seek to understand the future intersection of technology, finance, and innovation.
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