![Tesla Hodling Its Bitcoin Despite Market Upheaval Tesla Hodling Its Bitcoin Despite Market Upheaval](https://b3643570.smushcdn.com/3643570/wp-content/uploads/2023/01/tesla-1450-813x457-1.jpg?lossy=1&strip=1&webp=1)
According to the company’s latest earning report, electric carmaker Tesla has continued to hold on to its estimated 9720 BTC for a second straight quarter.
The company has steadfastly refused to sell its remaining Bitcoin during the latter half of 2022, despite selling off 75% of its holdings during the second quarter.
No Plans To Sell
Electric vehicle manufacturer Tesla has reportedly refused to offload any Bitcoin during the latter half of 2022. This means that the company has not bought or sold any BTC for the second straight quarter, the company reported in its earnings report. This was despite the recent crypto market upheaval following the collapse of the FTX exchange. The move comes after the company had sold 75% of its holdings during the second quarter.
According to the report, the company held $184 million in Bitcoin as of 31st December 2022, which was down from $218 million in holdings from the previous quarter. However, this was not due to a selloff but rather due to impairment charges, thanks to a decline in the price of Bitcoin. At the end of the third quarter, the price of Bitcoin was hovering at around $20,000, while at the end of the fourth quarter, the price had dropped to around $16,500.
Massive Selloff In Second Quarter
Tesla also revealed that it had made no changes to its Bitcoin holdings during the third quarter. However, the company surprised many investors during the second quarter when it sold around $936 million worth of BTC, which accounted for nearly 75% of its Bitcoin holdings. At the time, the company stated that the move was to raise cash due to the uncertainty created by the Covid-19 lockdown in China.
However, CEO Elon Musk also stated that the company was open to increasing its Bitcoin exposure in the future, and the sale should not be looked at as a judgment on the viability of Bitcoin as an asset. He further explained that the sale also proved the liquidity of Bitcoin as an alternative to holding cash on the company’s balance sheet. The move allowed Tesla to realize a profit of around $64 million.
A Profitable Quarter
The company’s most recent earnings call did not feature any discussion of its Bitcoin holdings or its position on Bitcoin. The quarter proved quite profitable for Tesla, with the company recording $5.7 billion in profits and generating a revenue of around $24.3 billion for Q4, with the company’s gross margins at their lowest levels in the past five quarters. The company posted an annual profit of $12.6 billion in 2022. While the figure missed analyst estimates, its profit margin was better than expected.
“In 2022, we produced & delivered 1.3M+ vehicles in Q4. We achieved our highest-ever quarterly revenue, operating income & net income.”
The company’s share price pushed up slightly following the report and has continued to trade in the green, up nearly 5%.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.