Tesla Reveals That No Bitcoin Was Sold In Q1 2023• April 20, 2023 11:41 am • Comments
Tesla has been known to be a long time supporter of using crypto in its business and and is also another large institutional investor along with MicroStrategy.
So far, Tesla still owns around $321 million worth of BTC and the company had revealed that it did not sell any of its Bitcoin during the first quarter of 2023.
This may indicate that the company is bullish on Bitcoin as the asset has been experiencing a bull rally since the beginning of the year.
Tesla has not made any changes to its Bitcoin holdings for the past three quarters and has not indicated that it will do so in the future.
Tesla founder, Elon Musk, has also mentioned that he will continue to support other cryptocurrencies such as Dogecoin which the company had recently used for some business operations.
🚀 Yesterday, #Tesla reported earnings and guess what? Their #Bitcoin stash remains rock solid at 14,000 BTC! ⚡️🔋 The future of electric vehicles and crypto going hand in hand, driving innovation and sustainability. #Cryptocurrency pic.twitter.com/gnHPqZ1yl7
— Yaroslav Krasko | Crypto Trader 🇺🇦 (@YaroslavKraskoo) April 20, 2023
According to Reuters, Tesla Inc missed market estimates for first-quarter margin on Wednesday, throttled by a series of aggressive price cuts meant to spur demand in a sagging economy and fend off rising competition.
The company reported first-quarter revenue of $23.33 billion. It also said in its quarterly update that Tesla has had a net profit of $2.5 billion. This is down from $3.32 billion a year earlier.
Bitcoin (BTC) price dropped today to under $30,000, currently sitting at $29,248.71, according to CoinMarketCap
Elon Musk has continued his recent support for other cryptocurrencies, primarily Dogecoin (DOGE), mentioning it in recent interviews. Tesla acquired $1.5 billion in Bitcoin in 2021 and held 9,700 Bitcoin as of February 2023.
Previously, Tesla had actually help a lot more Bitcoin, but it had sold a significant chunk last year which turned out to be a mistake for the company.
With Tesla continuing to hold BTC, investors believe that the company’s founder, Elon Musk, has a positive view on the future outlook of the asset and may integrate it into his other businesses such as Twitter.
Previously, Musk had shared that the company had made the Bitcoin sale in order to prove the liquidity of Bitcoin.
It turns out that the liquidity was very high and it prove that Bitcoin was indeed a good alternative to holding cash on a balance sheet which is what most companies do.
This may prove to be more useful in the future as companies look to protect themselves from inflation concerns.
— CryptoSavingExpert ® (@CryptoSavingExp) April 20, 2023
Similarly, Tesla’s Bitcoin sales in Q2 2022 came as its free cash flows declined 73% versus the previous quarter. Both sales suggest that Musk relied on Bitcoin as a haven during Tesla’s cash crunch phases.
The Tesla CEO explained at the time that the sale was made to “prove liquidity of Bitcoin as an alternative to holding cash on a balance sheet.”
Meanwhile, Wall Street analysts estimate that Tesla’s free cash flow in Q1 2023 could be nearly $2 billion, up 40% versus the previous quarter.
This should reduce the chances of Tesla dumping any significant Bitcoin amount in the near term.
— Satoshi Talks (@Satoshi_Talks) April 20, 2023
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