Tesla Sold None Of Its $711M Bitcoin (BTC) In Q1

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In the first quarter of this year, Tesla, which is a well-known electric car producer, didn’t offload any Bitcoins from its substantial reserves.

Bitcoin ATH Pushed Tesla’s Profit Margin

The front-runner among automobile companies now owns around 9,720 Bitcoins, obtained by selling off half of its earlier holdings in 2022. This Bitcoin collection is estimated to be worth over $711 million.

Based on its Q1 report, Tesla neither bought nor sold any Bitcoin during this quarter. This marks the seventh straight quarter with no Bitcoin transactions for the company. The absence of Bitcoin trading indicates that Tesla might be holding onto its Bitcoin stash.

Noteworthy, the American electric car manufacturer reported no Bitcoin sales in Q3 and Q4 of 2023.

For some market analysts, the lack of growth in Elon Musk’s company during Q1 might be concerning. However, it is important to consider that the price of Bitcoin experienced significant growth during the same period. In March alone, Bitcoin reached a new record high of $73,250 due to increased demand for Bitcoin ETFs, which were approved by the US Securities and Exchange Commission (SEC) in January.

The substantial rise in Bitcoin’s value implies that Tesla’s Bitcoin assets have experienced a considerable gain. Previously, when Tesla disclosed its Bitcoin holdings, the company owned approximately 9,720 Bitcoins valued at around $275.6 million. However, with Bitcoin’s price surge of over 200%, Tesla’s current Bitcoin holdings are significantly more valuable than what was reported earlier.

MicroStrategy and Tesla Bitcoin Strategy

Tesla and MicroStrategy led comparable Bitcoin approaches due to their choices to hold onto their Bitcoins instead of selling.

Instead of “However, MicroStrategy sets itself apart by continually purchasing more Bitcoin, expanding its holdings,” or “MicroStrategy distinguishes itself from others by buying additional Bitcoin and growing its stash.” In late February, this business intelligence and software company bought 9,245 more Bitcoins, raising its total to an impressive 214,246 Bitcoins. (mid-March can be changed to late February depending on the exact date of the acquisition)

Saylor repeatedly assures the public that his company currently has no intentions of unloading its Bitcoins. Tesla’s unwavering stance on not selling their Bitcoins suggests they may follow in MicroStrategy’s footsteps.

An upcoming Bitcoin halving could likely boost the cryptocurrency’s price in the near future, strengthening the value of the company’s Bitcoin holdings.

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2024-04-24 02:24