Bitcoin

Elon Musk

Elon Musk’s company has continued to hodl its BTC reserves for the fourth consecutive quarter after it was forced to divest 75% of its reserves back in 2022 Q2.&nbsp; Tesla Holding On To Its BTC 
The electric car company, Tesla, helmed by billionaire inventor Elon Musk recently announced that it had held on to its BTC reserves for the second quarter of 2023. Tesla (TSLA) remained inactive in the Bitcoin market, refraining from any purchases or sales of the cryptocurrency for the fourth consecutive quarter. The company's earnings release, issued after the market's closing on Wednesday, confirmed this trend. Tesla’s Digital Assets 
The value of Tesla's digital assets at the end of the quarter held steady at $184 million, the same figure reported for the past three quarters. During Q2, the price of Bitcoin experienced a slight increase, rising from approximately $28,500 at the end of Q1 to around $30,400. 
However, accounting regulations restricted Tesla from adjusting the valuation of its digital assets upwards in response to rising BTC prices unless the assets were sold. Nonetheless, the valuation could be reduced in the event of price declines, even before any sales occurred. Tesla’s BTC Investment 
Tesla initially acquired $1.5 billion worth of BTC in early 2021, which significantly boosted the crypto’s demand and price tag. CEO Elon Musk had also simultaneously made the announcement back then that the company would accept BTC payments for the Tesla cars, spurring even further interest in the crypto, which soon hit its all-time highest. However, Musk soon rescinded this proposal, declaring that BTC needed to be more environmentally friendly for this to happen.&nbsp; Selling Off 75% BTC 
Tesla, however, had to divest a significant portion of its BTC reserves in the second quarter of 2022 over liquidity concerns. The Tesla Gigafactory in Shanghai had been shut down for over 2 months due to the Covid-19 pandemic, resulting in a serious liquidity crisis for the company. It had to sell off over 30,000 BTCs, which amounted to about 75% of its holdings at the point, raking in a whopping $936 million, leaving around 9720 BTCs in its reserves.&nbsp; 
In its latest report, the company revealed that since then, it had not engaged in any BTC transactions, neither selling nor buying. Even during the significant market upheaval of January 2023, the company continued to hodl its BTC, despite amassing a loss of $140 million on its net Bitcoin holdings in 2022.&nbsp; Tesla’s Reported Earnings 
Regarding its financial performance, Tesla reported adjusted earnings per share of $0.91 for the second quarter. This result surpassed the consensus analyst estimate of $0.80, as reported by FactSet. Moreover, the company's revenue for the quarter amounted to $24.9 billion, exceeding analyst estimates of $24.2 billion. 
Throughout Q2 2023, Tesla's bitcoin holdings remained constant, showcasing the company's decision to remain on the sidelines of the volatile cryptocurrency market. Despite this, Tesla's financial performance and stock price continue to exhibit strength and resilience. As the electric car industry continues to evolve, investors and analysts keep a close eye on Tesla's movements in both the traditional markets and the ever-changing world of digital assets. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.&nbsp;

Tesla BTC Holdings Unchanged In 2023 Q2

Crypto Daily™

Other articles published on Jul 20, 2023

Kuwait Bans Bitcoin and Cryptocurrency Transactions

JBHT Stock (NASDAQ: JBHT) Sprayed 3% Intraday After Q2 Results

SEC Reviews Spot Bitcoin ETF Proposals from Six Prominent Firms

China’s Digital Yuan ‘e-CNY’ Close to $250 Billion Milestone

China Embraces Web3 to Challenge US Dominance in Tech and Economy

Tokenization – The Future of the Stock Market

Join our free newsletter for daily crypto updates!