Tesla Held Its Bitcoin Holdings Throughout Q4 2022

By Kevin • January 30, 2023 3:46 pm • Comments

Tesla’s 2022 Q4 results this month revealed that the company did not offload any of its Bitcoin holdings throughout Q4 2022 despite the market conditions.

This may indicate that the company is confident of the long-term outlook of the digital asset despite all the events that had occurred such as the FTX collapse.

As of right now, the data shows that the company’s total Bitcoin assets amount to $184 million which is less than what it had in the past due to the BTC price decline.

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The company’s CEO Elon Musk had previously mentioned integrating the company’s business operations with crypto in the past and had been an avid supporter of Dogecoin.

The company’s decision to hold on to Bitcoin seems to be paying off now as the price of Bitcoin recovers to around $23k.

CoinTelegraph reports:

The EV manufacturer also held onto its Bitcoin through Q3 last year after selling 75% of its Bitcoin during the second quarter. The Q2 sale added $936 million in cash to Tesla’s books and the firm profited $64 million.

Tesla CEO Elon Musk explained at the time the sale was to “prove liquidity of Bitcoin as an alternative to holding cash on a balance sheet.”

However, its Bitcoin holdings or take on Bitcoin was not discussed in Tesla’s most recent earnings call on Jan. 25. Based on estimates, Tesla holds about 9,720 BTC.

Overall, Tesla recorded $5.7 billion in profits from $24.3 billion in revenues for Q4 with its gross margins coming in at the lowest level in five quarters. The company posted a total profit of $20.8 million for 2022 from $81.4 billion in revenues.

Although Tesla holds digital assets like Bitcoin, it also has made some plans in the past which has allowed people to buy Teslas with Bitcoin.

From this, it is clear that the company is open minded towards the use cases of digital assets and there is a chance of further integrating them in the business.

With that being said, the amount of Bitcoin holdings that the company has is still relatively small compared to the company size and valuation.

As a result, Tesla’s stock price is relatively decorrelated from the price action of Bitcoin currently.

Investors believe that the company will continue to maintain its holdings or even increase it again in the future.

DeCrypto.co concludes:

At the time, the company’s balance sheet showed sales from digital assets amounting to $936 million, with Musk pointing to uncertainty surrounding Covid lockdowns in China and the need to maximize the company’s cash to justify the sale.

The sell-off left Tesla with 10,725 BTC in its portfolio. The company—despite all the turmoil in the markets—continued to hold the stash throughout the second half of 2022.

This makes Tesla the fifth-largest public company with Bitcoin on its balance sheet.

Michael Saylor’s Microstrategy still tops the ranks with 132,500 BTC worth over $3 billion in today’s prices, per Buybitcoinworldwide.

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