Even after the crypto market collapse and gloomy news that drowned the crypto environment, Tesla has been holding onto the crypto capital.
While Tesla’s Bitcoin investments are still submerged, the company’s overall earnings and revenue have exceeded expectations. TSLA stock is surging today and has increased by thirteen percent over the past five days. Shares of the firm also rose when Chief Executive Officer Elon Musk announced that the firm could possibly deliver two million Tesla this year. It has been revealed that Tesla did not sell the excess Bitcoin reserve, though it was expected that it would sell part of its crypto holdings during the fourth quarter of 2022.
According to a filing revealed by the Securities and Exchange Commission (SEC), Tesla’s BTC holdings should be placed at around $245 million which would be the remaining twenty-five percent of all the Bitcoin bought by the firm during the crypto bull run of 2021.
Even after the crypto market collapse and gloomy news that drowned the crypto environment, Tesla has been holding onto the crypto capital, according to its Q4 and FY 2022 Updates.
Initially, in the first quarter of 2021, Tesla bought 43,200 BTC for $1.5 Billion. The company grabbed onto its bitcoins for more than a year despite the beginning of the COVID-19 pandemic, which led to many firings and the end of several US firms. In July, last year, however, the company revealed that it had to sell seventy-five percent of its Bitcoin for $936 million, owing to the increase in the firm’s production costs in China, which had skyrocketed to unceremonious levels with the onset of another wave of coronavirus. Musk, at that time, had asserted that the firm would be open-minded about increasing the number of Bitcoin holdings in the future.
The business tycoon had also clarified in March 2022 that he had no plans to sell his personal bitcoins any time soon.
Tesla is known for its love of Bitcoins. It was one of the first companies to invest in massive amounts of Bitcoin, and its initial purchase propelled the BTC’s bullish rally, leading it from $20,000 to about $70,000. However, it eventually reduced its involvement in the BTC game due to the token’s energy consumption concerns. Soon after, Bitcoin dropped from $55K to $52K in a matter of hours.
The total revenue generated by Tesla is around $24.32 billion, which is 200 million more than the estimated value of $24.16 billion. Earnings per share touched $1.19 in contrast to the expected $1.13. Even though the firm acknowledged that the mean sales price took a downturn, it was balanced by the affordable rates offered for the EVs to sell to a larger population.
Musk, one of the most popular cryptocurrency influencers globally, has been very loud about his support for cryptocurrencies like Bitcoin and Dogecoin. The firm is probably halting to find the best time to make a move. Having said that, it is also possible that they are conveniently holding onto their Bitcoin stockpile for long-term investment.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.