In February of 2021, Tesla made headlines by purchasing a staggering $1.5 billion worth of bitcoin (BTC). This move had a significant impact on the price of bitcoin at the time. However, Tesla has also sold a large portion of its bitcoin since then. Despite this, the automaker still holds a substantial number of coins on its balance sheet and has not sold any of them in 2023.
Tesla has not yet sold bitcoin in 2023
According to the manufacturer’s second-quarter figures, Tesla reported a turnover of over $24.9 billion and achieved a record-breaking number of car productions. While the gross profit margin slightly declined from 19.3% to 18.2%, the results exceeded investor expectations by approximately 3%.
In the announcement, Tesla emphasized that it has not made any changes to its bitcoin investment. As per Bitcoin Treasuries, the company still owns 9,720 BTC, a figure that has remained unchanged since June 2022 when Tesla sold 75% of its holdings. This decision was driven by Tesla CEO Elon Musk’s anticipation of a recession, prompting the company to bolster its cash position. Additionally, Tesla sold 10% of its original bitcoin holdings to test the market’s ability to absorb a substantial sell-off.
The soaring price of bitcoin has been advantageous for Tesla, considering the coins it holds on its balance sheet. Since hitting its lowest point in December, the price of bitcoin has surged by more than 80%. Compared to the end of June 2022, the price has increased by around 50%.
Elon Musk sued: Dogecoin manipulation?
It is noteworthy that Elon Musk, CEO of Tesla, continues to show enthusiasm for cryptocurrencies, particularly Dogecoin (DOGE). He frequently shares cryptic messages on Twitter that seem indirectly related to the popular altcoin.
However, Musk has faced legal action over these tweets, with investors alleging that he manipulates Dogecoin’s price. Despite the lawsuits, the CEO has not refrained from sharing memes and other content related to the cryptocurrency.
In conclusion, Tesla’s original bitcoin purchase of $1.5 billion in 2021 shook the crypto market and contributed to a surge in the price of bitcoin. Although the company has sold a significant portion of its holdings since then, it still maintains a substantial number of coins on its balance sheet. Furthermore, Elon Musk’s ongoing interest in cryptocurrencies, particularly Dogecoin, continues to attract attention and occasionally leads to legal challenges regarding alleged market manipulation.