Tesla’s quarterly filing with the U.S. Securities and Exchange Commission (SEC) reveals that the company’s bitcoins are now worth $ 2.48 billion, a significant increase from its initial investment of $ 1.5 billion. This is also after the electric car company sold some bitcoins to “ prove its liquidity. ”
SEC Filing Shows Tesla Sitting On Bitcoins Worth $ 2.48 Billion
Elon Musk’s electric car company, Tesla Inc. (TSLA.O), disclosed the value of his bitcoin holdings in its quarterly report filed with SEC on Tuesday.
Tesla explained in the filing that it had purchased “a total of $ 1.5 billion in digital assets consisting solely of bitcoin” during the three months ending March 31. The company also began “accepting bitcoin as a payment for the sale of certain of our products in specified regions, subject to applicable law.” The company then sold some of its bitcoins in March.
After accounting for the sale of some bitcoins that raised $ 272 million, Tesla wrote:
On March 31, 2021, the book value of our bitcoin was $ 1.33 billion … The fair market value of bitcoin on March 31, 2021 was $ 2.48 billion.
The price of bitcoin on March 31 was around $ 59K according to data from markets.Bitcoin.com. It has fallen slightly since then. At the time of writing, the price of BTC stands at $ 54,900, which means that Tesla’s bitcoin holdings would now be worth about $ 2.31 billion.
While Tesla was selling some bitcoins, CEO and Technoking Elon Musk insisted on Twitter, “I haven’t sold any of my bitcoins.” He explained that “Tesla sold 10% of its positions mainly to prove bitcoin’s liquidity as an alternative to holding cash on its balance sheet.”
Meanwhile, Tesla is still committed to holding on to bitcoin for the long term. CFO Zachary Kirkhorn, whose title is also Master of Coin, said on Monday during the earnings call: “We believe in the long-term value of bitcoin. So our intention is to hold on to what we have in the long term and continue to collect bitcoin from our customers’ transactions as they purchase vehicles. “
What do you think about Tesla having $ 2.48 billion in bitcoin? Let us know in the comments below.
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