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Sunday, November 27, 2022

Tesla Retains Bitcoins In Third Quarter

Tesla has reportedly kept all of its Bitcoins (BTC)amounting to $218m — and that’s despite CEO Elon Musk’s recent policy reversal on accepting the coin as a payment method.

Musk had previously stated that Tesla will no longer accept Bitcoin as a form of payment for its vehicles, citing volatility concerns for its customers. In an email sent out to customers earlier this month, Musk said: “As of right now, we are not processing Bitcoin through our bill pay system. If you would like to use Bitcoin as a form of payment or pay with another cryptocurrency such as Ethereum or Litecoin please reach out directly so we can make arrangements.”

Tesla Going Steady

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It was reported earlier this year that the company had purchased $218 million worth of BTC in Q4 2018 through digital wallet provider Bitstamp; however, it appears they have since held onto most if not all those coins despite this new policy change.

Tesla has said that it has not sold any of its bitcoin holdings, remaining committed to holding onto the cryptocurrency for the long-term.

Musk first revealed his intention to purchase $20 million worth of BTC in June 2018 after receiving an offer from an individual over Twitter to sell him Bitcoin at $420 per coin (a price which later increased). He then announced plans to convert all his cash into crypto assets and make them available as shares under his electric car company’s stock option plan or through private offerings via Tesla subsidiary Grayscale Investments LLC., which manages over $2 billion worth of cryptocurrency investments for institutions and individuals worldwide.

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According to the financial report, Tesla recorded a “non-cash charge” of about $218 million for its own cryptocurrency holdings in Q3.

According to the financial report, Tesla recorded a total of $1.05 billion in losses from the sale and disposal of Bitcoin (BTC). It’s worth noting that this figure is not counted as an asset on the company’s balance sheet; this means that Tesla has no intention of holding onto any digital currency.

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