Tesla Held All Its Bitcoin Through Crypto Market Turmoil

Tesla had diamond hands through the market reckoning of late last year, opting to hold onto all its bitcoin leading into 2023

article-image

Kathy Hutchins/Shutterstock.com modified by Blockworks

share

After selling 75% of its bitcoin holdings in 2022, electric car manufacturer Tesla opted to hold its remaining supply through the fourth quarter, SEC filings show. 

In July 2022, Tesla reported it sold 75% of its bitcoin for $936 million in the second quarter. The sale marked the first change Tesla has made in its bitcoin holdings since the first quarter of 2021, when the company acquired some 43,200 bitcoins for $1.5 billion.  

“We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some verdict on bitcoin,” CEO Elon Musk said during the company’s 2022 second quarter earnings call on July 20, 2022. “It’s just that we were concerned about overall liquidity for the company, given Covid shutdowns in China.”

In its fourth quarter earnings report, Tesla reported no losses on its remaining bitcoin holdings. 

Bitcoin’s price fell during the fourth quarter after remaining fairly stable during the second quarter. The selloff was largely driven by FTX’s collapse, but since the start of 2023, bitcoin has shown signs of a rebound and is up close to 40% year to date.

In October, during the company’s third quarter earnings call, Musk maintained Tesla is open to increasing its bitcoin exposure in the future. The CEO also said Tesla has held its dogecoin, currently the only cryptocurrency the electric car company accepts — although only for a limited selection of products, not including vehicles. 

“The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties,” Tesla’s third quarter report noted. “For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report cover graphics (4).jpg

Research

Despite crypto gaming related projects and funds raising close to a billion dollars in November 2021, there have been only a handful of games that have attracted users apart from mercenary capital, and have had sustained activity for longer than a few months. Crypto gaming is going through an infrastructure phase. Theoretically, crypto gaming stands to benefit from purpose-built, high throughput chains, where blockspace is cheap (especially for games which are fully onchain). However, despite the launch of many gaming-focused chains, most crypto games are lacking in quality and quantity. Most new crypto gaming infrastructure either have no games or only a few games launched (e.g. Xai) or have failed to garner meaningful attention (e.g. Immutable X).

article-image

As Bloomberg analysts up their ether ETF approval odds, concerns about ETH’s liquidity and its possible status as a security remain

article-image

Ethereum is becoming a multilayered lasagna-like system, pushing people to the margins with its complexity and fees

article-image

Ether would be set to re-test its 2021 price high should the regulator unexpectedly approve ETH funds, industry watchers say

article-image

The Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act, is expected to head to the floor for a vote in the House in the afternoon on May 22

article-image

NYAG announced details about its settlement with bankrupt lender Genesis on Monday

article-image

The $948 million of inflows from May 13 to May 17 roughly equaled the net money that left the fund category over the five prior weeks