Here’s What Tesla Did With its Bitcoin Holdings in Q3 2023
Tesla’s Q3 2023 financial report reveals that the company did not trade or sell any Bitcoin during the last three months.
As of Sept. 30, Tesla still possesses around 9,720 BTC, valued at approximately $275.6 million based on current market rates.
Tesla Still Holds its Bitcoin
According to Tesla’s recently released Q3 2023 financial report, the electric vehicle manufacturer did not engage in any Bitcoin buying or selling activities over the past three months.
As of Sept. 30, Tesla still held around 9,720 BTC, valued at approximately $275.6 million at current market prices. This marks the fifth consecutive quarter that Tesla has maintained its Bitcoin holdings without making any changes.
Meanwhile, Tesla’s stock faced a 4.78% decline after the market closed today, with shares valued at $242.68 each. In addition to the information about Tesla’s Bitcoin holdings, the company reported revenue of $23.35 billion for the third quarter, slightly below the estimated $23.9 billion projected by analysts.
Tesla also reported adjusted earnings of 66 cents per share, falling short of the 73 cents per share expected.
Tesla’s History with Bitcoin
Tesla first ventured into cryptocurrency in early 2021 when it invested $1.5 billion in Bitcoin, as reported in a filing with the United States Securities and Exchange Commission (SEC). At that time, the company acquired 43,000 BTC at an estimated price of approximately $34,000 per coin. Simultaneously, Tesla started accepting Bitcoin as a payment option for its vehicles and other products.
However, shortly after this initial investment, concerns arose about the environmental impact of Bitcoin mining. CEO Elon Musk expressed reservations about the cryptocurrency and decided to sell 4,320 BTC from Tesla’s holdings. This move coincided with a decline in Bitcoin’s value, resulting in a $101 million impairment loss for the company.
Tesla continued to sell its Bitcoin holdings, and by the second quarter of 2022, it had reportedly disposed of 75% of its holdings. Musk explained that this decision was influenced by uncertainties surrounding the duration of COVID lockdowns in China, and the company needed to bolster its cash reserves. Since then, Tesla has maintained a consistent stance on its Bitcoin holdings, as emphasized by its recently released Q3 2023 report.
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