“Tesla takes a detour from Bitcoin sales in Q3, paving the way for a potential shift in cryptocurrency strategy.”
Based on the newly released third-quarter earnings report for electric automobile manufacturer Tesla, the company did not complete any sale of Bitcoin (BTC) in the last three months. Tesla currently holds 9,720 BTC, valued at approximately $275.6 million.
This lack of conversion from BTC to fiat currency suggests that Tesla did not make any proactive selloff move, which would have impacted its profitability and cash balance. If such a move had been made, it would have been reported by the company.
Tesla initially invested $1.5 billion in Bitcoin earlier this year and bought 43,000 units of the digital asset at an average price of around $34,000. At that time, Tesla also started accepting BTC as a payment option for its vehicles and products.
However, concerns about the environmental impact of Bitcoin mining led CEO Elon Musk to sell off 4,320 BTC from Tesla’s holdings. This resulted in a $101 million impairment loss for the company. In Q2 2022, Tesla successfully sold 75% of its Bitcoin holdings, citing the need to maximize its cash position due to uncertainty about COVID lockdowns in China.
Since then, Tesla has maintained its Bitcoin holdings. The recently released Q3 2023 report shows no change in the company’s digital asset holdings.
It is important to note that the content presented in this blog is the personal opinion of the author and may be subject to market conditions. It is advisable to conduct your own market research before investing in cryptocurrencies. The author and publication do not hold any responsibility for personal financial losses.