In Feb 2021, Tesla made a Bitcoin purchase worth $1.5 billion. This was the changing moment for cryptocurrency as Elon Musk’s name was now associated with it. After the same, they sold $250 million in Bitcoin to see market liquidity and how it affects the price. And since, then Tesla has been holding onto its billion-dollar Bitcoin bet. Tesla’s recent financial statement shows that they have $1.26 billion in Bitcoin in their balance sheet.
The Q4 financial statement
The company financial statement for Q4 2021 is now out, and you can take a look at it. The balance sheet is the same as Q3 2021 in terms of the digital asset holdings. Their statements also show that Tesla hasn’t either purchased or sold any Bitcoin in the last 3 quarters. So, they are strongly holding on to the market’s ups and downs. Tesla never disclosed the exact number of Bitcoin that they have, but it is expected to be near 42,000, a number hinted at by Elon.
Tesla accepting Bitcoin payments
Shortly after Tesla took its billion-dollar Bitcoin bet, it also started accepting cryptocurrency as a payment medium. This was a huge thing for BTC as the adoption from an S&P 500 company is a milestone. But after a while, Elon announced that Tesla would pause the Bitcoin payment options due to the environmental concerns that are attached to it. In fact, this goes against what they are trying to do as an EV company. But Elon also said that after Bitcoin’s mining reaches 50% renewable energy, it will start accepting it again.
A few days back, The Bitcoin Council announced that 46% of Bitcoin mining has now moved to renewable energy sources. So, it is just a matter of time before Tesla starts accepting it again. We do have to wait till this number reaches more than 50%.
Dogecoin
A while back, Elon announced that it will now be accepting payments in Dogecoin for its merchandise. Even though you cannot buy their EVs with Doge, this step is still going to solidify Musk’s stance as an avid supporter of Dogecoin. He has repeatedly said that Dogecoin is better suited as a payment medium while Bitcoin is a store of value.
What are your thoughts as Tesla is still holding onto its billion-dollar Bitcoin bet? And do you expect them to sell anytime soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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