Tesla continues to hold its stake in Bitcoin, which is already generating solid profits. The company's digital asset value at the end of Q3 was $1.26 billion, according to its earnings report.
On February 8, the manufacturer announced that it had updated its investment policy to give itself more flexibility to further diversify and increase the return on its cash, and had acquired $1.5 billion in Bitcoin cryptocurrency. Although the purchase price of the crypto coin was not disclosed, it is reported that the purchase was made in January.
Tesla sold 10% of its Bitcoin in Q2 at an average price of about $50,000 per coin. The CEO of the company Elon Musk later tweeted that Tesla sold 10% of its Bitcoin assets to prove the asset's liquidity and viability as an alternative to cash on its balance sheet. In June, he also wrote that Tesla owns less than 42,069 Bitcoins, although that that number is close. In its Q2 earnings report, Tesla announced that it made a $128 million profit from the sale of Bitcoin.
In its Q3 2021 earnings report, Tesla wrote that the company had $1.26 billion in digital assets at the end of the quarter. As of September 30, Bitcoin was worth about $43,340 per coin. It should be kept in mind that since then, the value of Bitcoin has increased by more than 44%, and at the time of this writing is $62,520.
© 2021, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.