HODL

Bitcoin

Gains

Elon Musk

Tesla, an American multinational automotive and clean energy company based in Austin, Texas, failed to capitalize on gains of around $300 million by refusing to HODL Bitcoin and selling most of the digital assets that it held on its balance.&nbsp;
It’s significant to note that Elon Musk, a billionaire businessman and internet sensation, has sold more than 70% of his company’s Bitcoin holdings so far but has refrained from doing so in the future, demonstrating the company’s more cautious approach.
<h2 id="span-style-font-weight-400-bitcoin-outperforms-tesla-span">Bitcoin Outperforms Tesla</h2>
Tesla first invested in Bitcoin back in February 2021, buying $1.5 billion worth of the leading cryptocurrency. Interestingly, the digital asset’s price was around $36,000 at this time. Notably, since the first reported BTC balance on February 8, 2021, the price of the company’s stock is down 40% against Bitcoin.&nbsp;
As reported earlier by TheCoinRise,<a href="https://thecoinrise.com/tesla-dumps-75-of-its-total-bitcoin-holdings/" rel="noopener noreferrer nofollow"> Tesla sold 75% of its Bitcoin holdings</a> after selling 10% of its holdings back in Q2 2021, when the price of Bitcoin recorded a massive upshoot at the time, giving the company a profit of $101 million.&nbsp;
<h3 id="span-style-font-weight-400-hypothetical-profit-of-300-million-span">Hypothetical Profit of $300 Million</h3>
Musk said that his company<a href="https://tesla-cdn.thron.com/static/EIUQEC_2022_Q2_Quarterly_Update_Deck_J8VLIK.pdf?xseo=&amp;response-content-disposition=inline%3Bfilename%3D%22_022-Q2-Quarterly-Update-Deck.pdf%22" rel="noopener noreferrer nofollow"> sold</a> 75% of its BTC holdings to demonstrate Bitcoin’s liquidity and to bolster its balance sheet amid uncertain financial conditions.&nbsp;
More importantly, if Tesla had retained its BTC holdings, it would’ve garnered a massive profit north of $300 million based on the current price of Bitcoin, which is trading above $42,000. Bitcoin is up 84.1% in the past year, as per<a href="https://www.coingecko.com/en/coins/bitcoin" rel="noopener noreferrer nofollow"> CoinGecko</a>.&nbsp;
<h2 id="span-style-font-weight-400-tesla-is-not-selling-anymore-span">Tesla is Not Selling Anymore</h2>
The Texas-based company’s Bitcoin holdings have remained unchanged since the past few quarters as it has adopted a more careful approach to digital assets with the upcoming halving and the<a href="https://thecoinrise.com/us-sec-grants-official-approval-for-a-spot-bitcoin-etf/" rel="noopener noreferrer nofollow"> approval of the eleven spot BTC ETFs</a> by the Securities and Exchange Commission (SEC) in the United States.
Tesla currently has an estimated 9,720 BTC, and as earlier covered by TheCoinRise, these coins have remained<a href="https://thecoinrise.com/tesla-maintains-bitcoin-holdings-amid-ai-expansion-in-q3-2023/" rel="noopener noreferrer nofollow"> untouched for the past few quarters</a>.&nbsp;
Additionally, in a January 31, 2023 report, Tesla confirmed that it had<a href="https://thecoinrise.com/tesla-suffered-120m-in-bitcoin-loss-in-2022/" rel="noopener noreferrer nofollow"> incurred a $204 million gross impairment loss</a> on its Bitcoin assets during 2022.
<h3 id="span-style-font-weight-400-elon-musk-and-digital-assets-span">Elon Musk and Digital Assets</h3>
Elon Musk, the founder of Tesla, has been a strong supporter of the digital asset sector and<a href="https://thecoinrise.com/dogecoin-is-better-to-bitcoin-in-handling-lots-of-transactions-musk-says/" rel="noopener noreferrer nofollow"> promoted investments in Dogecoin (DOGE)</a>, a memecoin that skyrocketed in the 2021 market bull run.&nbsp;
The billionaire has also<a href="https://thecoinrise.com/elon-musk-calls-for-a-comprehensive-overhaul-of-sec/" rel="noopener noreferrer nofollow"> called out the SEC, asking for a “comprehensive overhaul”</a> of the regulator that had filed a lawsuit against him for his “blanket refusal” to provide testimony in their ongoing investigation.&nbsp;
The post <a href="https://thecoinrise.com/tesla-failed-to-capitalize-on-300m-gains-on-btc-holding/" rel="noopener noreferrer nofollow">Tesla Failed to Capitalize on $300M Gains on BTC Holding</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Tesla Failed to Capitalize on $300M Gains on BTC Holding

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