Tesla CEO Elon Musk has confirmed that he owns bitcoin and has not sold any of his interests. However, his company Tesla has sold some of its bitcoins, which Musk says is “essentially to prove bitcoin’s liquidity.” Tesla’s Master of Coin says the company believes in the value of bitcoin and will hold the cryptocurrency long-term and accumulate from car sales.
Tesla sold 10% of its Bitcoin assets and made $ 272 million
Tesla, Elon Musk’s electric car company, announced its first quarter results on Monday. Ahead of the earnings call, bitcoiners were hoping to hear how much bitcoins Tesla had bought since its original $ 1.5 billion investment early this year. However, Tesla has revealed that it actually sold some BTC over the quarter.
Zachary Kirkhorn, Tesla’s chief financial officer whose title was changed to Master of Coin, said during the earnings call:
We also invested $ 1.5 billion in bitcoin during the quarter and then reduced our position by 10%, adding to a small gain in our first quarter financials.
Tesla’s unaudited cash flow statement shows an entry for “Revenue from Digital Asset Sales” of $ 272 million. The balance sheet shows net imports of digital assets of $ 1.331 billion.
Elon Musk owns Bitcoin and has not sold any
The news that Tesla was selling some of its bitcoins went viral on social media and many people on Twitter are angry with Elon Musk, the CEO whose title was changed to Tesla’s Technoking.
Stock trader Dave Portnoy, who recently became a proud owner of one bitcoin, responded in a tweet: “So, am I getting this right? Elon Musk buys bitcoin. Then he pumps it. It goes up. Then he dumps it and makes a fortune. “
Musk replied, “No you don’t.” He went on to say, “I have not sold any of my bitcoins,” confirming that “Tesla has sold 10% of its assets.” The Tesla technoking claims that the BTC sale was “essentially to prove bitcoin’s liquidity as an alternative to holding cash on the balance sheet.”
Tesla’s Bitcoin strategy is moving forward
Kirkhorn explained during the earnings call, “Elon and I were looking for a place to store cash that was not immediately used, in an attempt to get some returns here, but also to maintain liquidity … Bitcoin seemed at the time and so far has turned out to be a good decision. “
He continued, “If we think about it from a corporate treasury perspective, we are quite happy with the amount of liquidity there is in the bitcoin market.” Kirkhorn explained: “We were able to quickly build up our first position. When we did the sale later in March, we were able to do that very quickly too. And so when we think about some kind of global liquidity for the risk management company, being able to get cash in and out of the market is something that I think is extremely important to us. “
Tesla’s Master of Coin emphasized:
We believe in the long-term value of bitcoin. So our long-term intention is to hold on to what we have and continue to collect bitcoin from our customers’ transactions as they purchase vehicles.
How many bitcoins do you think Elon Musk owns and how do you feel about Tesla selling a few to prove liquidity? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Tesla, Twitter
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