Tesla’s Q1 Bitcoin holdings reveal this about its sentiment toward BTC
- Tesla’s Q1 report showed that the company still held around 11,950 BTC as of 19 April
- The company did not register any BTC gains over the past three months in its report
Tesla – the American electric car manufacturing giant – released its much-awaited first-quarter report for 2023 on 19 April. The car manufacturer’s accounting sheets showed that the company did not make any changes in its Bitcoin [BTC] holdings.
This was in comparison to the last Q4 report of 2022.
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Tesla’s Bitcoin Bet
This aforementioned statement proved that Tesla neither bought more coins nor sold existing ones. Notably, this is the third consecutive quarter the firm held the same stance on its BTC holdings.
The car manufacturer initially entered the crypto market in February 2021. The firm purchased BTC worth $1.2 billion but sold 75% of this investment in July 2022. Moreover, the sale took place right when the king coin had started losing its value. Notably, the sale added around $936 million to the firm’s accounting books in cash reserves.
The electric vehicle manufacturer held around 11,950 BTC at press time, which was worth over $349 million. Interestingly, Tesla’s report also showed that the value of held BTC remained the same as the previous quarter. The e-car manufacturer’s Q4 2022 report placed its BTC asset value at $184 million. This same number was projected for this quarter as well despite a surge in the coin’s price.
Furthermore, BTC’s price reached a high of $23,954 in January 2023, while it reached a peak of $29,380 in the month of March 2023. Tesla did not increase its BTC valuation because of accounting rules. The electric vehicle manufacturer classifies its BTC holdings as an intangible assets-goodwill. This means that the company will register quarterly impairment analysis for losses but the gains will be registered only if it is sold.
Notably, Tesla had a more pro-Bitcoin stance before the 2022 bear market. The company, spearheaded by Elon Musk, was set to add BTC as an option for payments for purchases. However, the plan was aborted with Musk citing environmental concerns surrounding the mining of the largest digital currency in the market.
Subsequently, he also claimed that BTC was not “a good substitute for transactional currency,” while voicing support for Dogecoin [DOGE].