Tesla’s Bitcoin (BTC) Holding Unchanged for Two Consecutive Quarters At $184M

The post Tesla’s Bitcoin (BTC) Holding Unchanged for Two Consecutive Quarters At $184M appeared first on Coinpedia Fintech News

Tesla Inc. (NASDAQ: TSLA) purchased its first Bitcoin holding in early 2021 worth approximately $1.5 billion. During the same period, the company announced that it would begin accepting Bitcoin for electric vehicle purchases. The announcement increased crypto enthusiasm and contributed to Bitcoin’s first upsurge beyond $50k. 

However, the thrill was short-lived as regulators complained about Bitcoin’s high energy consumption in its Proof-of-Work (PoW). 

As a result, Tesla canceled its use of Bitcoin as a form of payment for electric vehicle purchases. Notably, Tesla indicated that it would revisit Bitcoin as a form of payment after miners transition to more sustainable energy sources. 

Tesla and Bitcoin Market

Ever since the company purchased Bitcoin in 2021, it has been a long-term holder, but constantly readjusted its holdings. According to the latest Tesla quarterly financial report, the company held Bitcoins worth  $1.261 billion during the first quarter of 2022. However, the company’s holdings significantly dropped to approximately $218 million during the second quarter. 

The decline in Tesla’s Bitcoin holding during last year’s second quarter coincided with the 2022 crypto crash fueled by the Terra Luna UST crash. The company held its Bitcoin bag through the third quarter of 2022 unchanged. However, during the fourth quarter financial results, Tesla announced its Bitcoin holdings at about $184 million. 

Again, the company’s selloff coincided with the crypto crash fueled by the FTX and Alameda Research implosion that wiped out over $30 billion from the industry.

And now, during the first quarter of 2023, the company has announced that its Bitcoin holding remains unchanged at approximately $184 million. Notably, the current accounting rules do not allow Bitcoin gains to be booked. Moreover, Bitcoin price gained more than 70 percent during the first quarter.

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