Did Tesla Really Sell Bitcoin? Income report Blinks lightly

Tesla adding Bitcoin to its corporate coffers in February was seen as a tipping point for the cryptocurrency. A large company including BTC on its balance sheet seemed like a sign that BTC has gone mainstream.

Tesla CEO and “Technoking” Elon Musk was apparently convinced by MicroStrategy’s CEO Michael Saylor to pursue a similar treasury strategy and include BTC in their balance sheet. However, Tesla’s recent first-quarter earnings report shows that the automaker has pursued its own strategy.

The company announced a $ 1.5 billion BTC purchase. Their earnings report shows that Tesla has sold some of it. At least 9% of its BTC, according to the document, Tesla made a profit of $ 272 million. The company still owns approximately $ 2.6 billion worth of cryptocurrency. The company disclosed the following:

Year over year, the positive effects of volume growth, regulatory credit revenue growth, gross margin improvement were driven by further product cost reductions and the sale of Bitcoin ($ 101 million positive impact, net of related impairments, in the Restructuring & Other) mainly lower ASP, higher SBC, additional supply chain costs, R&D investments and other items.

Bitcoin’s performance is affected after Tesla’s disclosure

After signs of recovery during the past day. Bitcoin appears to be reacting negatively to Tesla’s report. When the company announced its BTC purchase, the cryptocurrency went from the high range of $ 38,000 to $ 53,000.

As trader Luke Martin reported on Feb. 8thWhen Tesla’s purchase was made public, Bitcoin has its “biggest candle in history.” The cryptocurrency went from a low of $ 38,058 to a high of $ 46,929 with an increase of $ 8,871 in less than 24 hours. Martin said the following in the report:

The price of Bitcoin is still higher than where Elon came in. It doesn’t really matter if he sells 10% of his stack. There will be collective whales like Saylor that last forever and whales like Elon that double sell. It is still optimistic that this new type of copper is here at all.

Other members of the crypto community believe Tesla “trades” Bitcoin and could create selling pressure in the market. Attorney Collins Belton said Tesla still needs to pursue a corporate treasury management plan.

According to the expert, the company could have obligations and still have to stick to an investment policy. As a result, Tesla’s finance department still has to meet “certain targets” that take into account BTC’s volatility. Strap on added:

They could lose hope, but I’m pretty skeptical that they would have undergone so much legal zeal to immediately reverse a few months later.

BTC is trading at $ 53,396 with a 12.5% ​​gain on the daily chart. In the weekly and monthly chart, BTC shows a loss of 3% and 5% respectively. Market capitalization is $ 998 billion.

BTC with moderate gains on the daily chart. Source: BTCUSD Tradingview

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