Report Revealed Elon’s Tesla Sold Bitcoin in Q1.
Tesla filed its report on Q1 earnings, and it looks like the company cashed out some of its Bitcoin.
Today in an investor call, the electric carmaker reported their earnings in Q1 2021 and it revealed the $272 million and a “$101 million” positive impact” from an outflow of $1.2 billion cryptocurrencies.
Elon Musk, stated that the company “sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on the balance sheet.”
Tesla’s Earnings Report
Tesla reported in its filings in the SEC last January that it had purchased bitcoin that amounted to $1.5 billion. It revealed that they will not only accept Bitcoin as a payment, but keep any BTC it earned from sales.
During the call, CFO Zach Kirkhorn said the company plans to continue holding Bitcoin in treasury and that it will stock Bitcoin from auto sales, continuing;
Bitcoin’s price rose during the first quarter, boosted by Tesla’s purchase and also the bullish buys from MicroStrategy and Square. By the start of the year, Bitcoin amounted around $32,000 and now it is worth over $53,000.
The $272 million in Bitcoin sales added to a record of quarterly net income for Elon’s company of $438 million.
Although bullish for Tesla, it is less for Bitcoin, which price was up by 10% before Tesla’s announcement. Musk’s tweets urged the markets to move. Last January, he added Bitcoin to his Twitter profile and observed the market gained $4,000 in just half an hour. Maybe it is correlated? However, even if the effect is an imagination, Musk’s tweets are not related with the drops in the market.
What will it be for Tesla?
Just this past weekend, as the price of Bitcoin dropped to $50,000 for the first time in one month, Musk tweeted “What does the future hodl?” The spelling seemed to be talking about those who hold Bitcoin for a long time.
It was not referring to the status of Tesla. But aside from electric vehicles, the company has another objective: to make money for their stockholders, even if it means selling a bit of Bitcoin.