Tesla Holds Its Remaining Bitcoin Through Q3 After Q2 Sale
In July, Tesla reported it sold 75% of its bitcoin for $936 million in the second quarter of 2022
Elon Musk | Source: Steve Jurvetson/"Elon Musk" (CC license)
key takeaways
- The sale in the second quarter was the company’s first bitcoin trade since Q1 2021
- In its third quarter earnings report, Tesla reported no losses on its remaining bitcoin holdings
After selling 75% of its bitcoin holdings earlier this year, electric car manufacturer Tesla has opted to hold its remaining supply through the third quarter, SEC filings show.
In July, Tesla reported it sold 75% of its bitcoin for $936 million in the second quarter. The sale marked the first change Tesla has made in its bitcoin holdings since the first quarter of 2021, when the company acquired some 43,200 bitcoins for $1.5 billion.
“We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some verdict on bitcoin,” CEO Elon Musk said during the company’s 2022 second quarter earnings call. “It’s just that we were concerned about overall liquidity for the company, given Covid shutdowns in China.”
In its third quarter earnings report, Tesla reported no losses on its remaining bitcoin holdings — the digital asset’s price has remained fairly flat over the past three months.
Musk maintains the company is open to increasing its bitcoin exposure in the future. The CEO also said Tesla has held its dogecoin, currently the only cryptocurrency the electric car company accepts — although only for a limited selection of products, not including vehicles.
“The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties,” Tesla’s most recent quarterly report noted. “For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers and businesses is unpredictable.”
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