Tesla Held All Its Bitcoin Through Crypto Market Turmoil

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.”

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