SEC Filing Reveals That Tesla Has Big Plans For Crypto

May 3, 2022 12:38 pm

Recent SEC filings reveal that Tesla has many plans in store when it comes to involving digital assets in its future plans.

The report states that the company believes in the future growth of digital assets where it can be used as both a way for the company to invest its current holdings as well as an alternative payment method instead of cash.

This is not the first time that Tesla was involved with crypto as the company had previously experimented with using Dogecoin as a method to accept payment for company merchandise.

Additionally, the company already holds a pretty significant amount of crypto according to its first quarters earnings report which amounted to around $1.26 billion.

The total value that the assets amount to right now is currently $1.96 billion which indicates that the company is slowly increasing its exposure to the market.

Blockworks.co reports:

Tesla CEO Elon Musk’s love-hate relationship with cryptocurrencies has been playing out on the public stage for over a year.

In March 2021, a month after Tesla’s bitcoin purchase, Musk announced via Twitter that the company would be accepting bitcoin as a means of payment.

Less than two months later, also in a tweet, Musk reneged on his previous statement, revealing that Tesla would not be accepting bitcoin due to the cryptocurrency’s environmental impact.

In July 2021, Musk clarified that if bitcoin mining moved in a sustainable direction, he would reconsider adding it as a payment method.

In October, the company confirmed it was leaving the door open to crypto payments in an SEC filing.

Musk has particularly been a strong proponent of the use of the meme coin known as Dogecoin which is still usable for shopping for online items from the company’s store.

With that being said, there weren’t any details within the report on how much revenue was actually generated from the use of Dogecoin.

In terms of whether or not the company will continue to change its stance on its current crypto holdings, the report says that the company will adapt according to current market conditions as it makes its decisions.

Most of the holdings are used so far as a storage of wealth and Bitcoin was the digital asset of choice despite Musk’s known preference for the use of Dogecoin.

TheNewsCrypto.com reports:

Even though the mining of Bitcoin had a detrimental influence on the environment, Musk kept it beneath the curtains and continued to hoard it.

But according to reports, Tesla hasn’t purchased or sold any bitcoin in the last four quarters.

In February of last year, Tesla had claimed it acquired $1.5 billion in bitcoin. However, there was no movement until the firm had to record a $51 million loss to show the reduction in bitcoin’s price in the third quarter.

Tesla seems to have a solid foundation in crypto. As indicated in one of its most recent SEC filings, in January 2021, the business considered diversifying its portfolio and investing in digital assets and gold bullion.

With Musk’s bid for Twitter coming out to be successful, investors are also wondering if Tesla will collaborate with Twitter on any future crypto plans.

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