Elon Musk’s Tesla kept its bitcoin stock in Q4 despite the market’s ups and downs

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Electric car manufacturer TeslaIt refused to sell more bitcoins in the second half of 2022. However, it sold 75% of its bitcoins in the second quarter.

Tesla’s financials, released in its fourth quarter earnings report on January 25, show that the company neither bought nor sold bitcoins for the second quarter in a row. This was despite serious market volatility in the following November and December The collapse of FTX.

Indeed, the company held $184 million in bitcoin assets as of December 31, up from $218 million in the previous quarter. This decrease is explained by an impairment of $34 million the fall in the price of bitcoin between the end of September and December last year.

By September 30, 2022 bitcoin was around $19,500Down about 15% to $16,600 as of December 31.

It remained in the hands of the electric vehicle manufacturer its estimated reserve is 9,720 bitcoins. He lost a total of $34 million on his investment by the end of 2022 due to falling prices.

The electric car maker held onto its bitcoins until the third quarter of last year after selling 75% in the second quarter. This sale bitcoin It earned Tesla 936 million dollars in cash and profits of $64 million.

Elon Musk, CEO of Teslahe explained at the time that the bitcoin sale was intended to “prove the liquidity of bitcoin as an alternative to holding cash on a balance sheet.”

Tesla, which is still in possession 9,720 BTC they don’t want to sell. In addition, Elon Musk’s company did not discuss its bitcoin holdings or its stance on the crypto during its recent earnings call on January 25.

Tesla generated a total of $5.7 billion in revenue earned $24.3 billion in revenue in the fourth quarter. Thus, the company recorded its lowest gross margin in five quarters. For 2022, the company reported gross profit of $20.8 million on revenue of $81.4 billion.

Although this turnover did not reach analysts’ estimatesearnings were above consensus estimates.

Tesla’s stock price rose slightly on the day, will close with a gain of almost 0.40%. It continued to trade higher after the start of the session. According to Google Finance, it is up about 4.6% at the time of writing.

Tesla is selling 75% of its Bitcoin (BTC) stake in 2022

In July 2022 Tesla has announced that it has sold 75% of its bitcoin holdings $936 million in the second quarter. The sale was Tesla’s first change to its bitcoin portfolio since the first quarter of 2021, when the company acquired about 43,200 bitcoins for $1.5 billion.

during the company’s second quarter 2022 earnings conference callOn July 20, 2022, CEO Elon Musk said:

“We are ready to increase our bitcoin reserves in the future, so this should not be taken as any verdict on bitcoin.”

He continued :

“We were just concerned about the overall liquidity of the business given the Covid shutdown in China.”

And so it is fourth quarter earnings reportTesla reported no change in its remaining bitcoin reserves.

After this sale The price of bitcoin fell during the fourth quarter after remaining fairly stable during the second quarter. Much of this fall was attributed to the collapse of FTX, but since the beginning of 2023, bitcoin has shown signs of a rebound and is up nearly 40% year to date.

During Tesla’s third-quarter earnings conference call last October, Musk confirmed that the company is ready to increase its bitcoin investment in the future. The general director also said this Tesla had kept a reserve of Dogecoin. It’s also the only cryptocurrency the electric car company currently accepts, but only for a limited range of products, excluding vehicles.

Tesla’s Third Quarter Report note:

“Digital asset prices have in the past been and may continue to be highly volatile, particularly due to various associated risks and uncertainties.”

In addition, it adds:

“For example, these asset spreads are a relatively new trend, and their long-term adoption by investors, consumers and businesses is unpredictable.”

in 2021 Tesla had already sold 10% of its bitcoins to strengthen its liquidity. After this selloff, the price of BTC fell further before rising again in the following months. If the automaker hasn’t sold its BTC in the second half of 2022, it still believes in the value of the cryptocurrency.

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