During the next report on profitability, Tesla announced the sale of bitcoins in the amount of $ 936 million in the second quarter of this year. This was about 75% of the automaker's bitcoin savings. The head of the company, Elon Musk, has already stated that the sales do not signify a verdict on the cryptocurrency and are situational in nature.
According to Musk, the sale of bitcoins is due to the fact that the company was unable to determine the timing of the end of pandemic restrictions in China, so it was necessary for it to have a "cushion" of cash for possible expenses. The company intends to invest in bitcoins in the future as well, and the "jewel" with the company's savings in Dogecoin has remained completely untouched.
According to the Coindesk exchange, immediately after the publication of the relevant information, the price of bitcoin fell by 1.7% to $23,300, but very quickly returned to its previous values after Musk's comments. Tesla reportedly ended the second quarter with $218 million in bitcoin savings, up from $1.26 billion in the previous three quarters.
The electric vehicle maker reportedly owned 42,000 "coins" prior to the sale. If a company sold 75% of its savings, you can calculate that it was selling them at an average price of $29,000 per bitcoin. Given that the cryptocurrency ended the quarter with a rate of about $18,700, it can be assumed that Tesla sold its savings a little earlier, when the rate was more profitable.
In February 2021, Tesla announced that it had purchased $1.5 billion worth of bitcoin, and as a result of the announcement, the price of the cryptocurrency went up. Later in the first quarter, the company sold off 10% of its qualifying savings, boosting quarterly earnings by $272 million. Until recently, no other purchases or sales were reported.
The automaker began accepting bitcoin as a form of payment for its cars in March last year, but just six weeks later, Musk suspended such sales, citing the potential environmental impact of bitcoin mining, and has not yet revisited the issue.
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According to Musk, the sale of bitcoins is due to the fact that the company was unable to determine the timing of the end of pandemic restrictions in China, so it was necessary for it to have a "cushion" of cash for possible expenses. The company intends to invest in bitcoins in the future as well, and the "jewel" with the company's savings in Dogecoin has remained completely untouched.
According to the Coindesk exchange, immediately after the publication of the relevant information, the price of bitcoin fell by 1.7% to $23,300, but very quickly returned to its previous values after Musk's comments. Tesla reportedly ended the second quarter with $218 million in bitcoin savings, up from $1.26 billion in the previous three quarters.
The electric vehicle maker reportedly owned 42,000 "coins" prior to the sale. If a company sold 75% of its savings, you can calculate that it was selling them at an average price of $29,000 per bitcoin. Given that the cryptocurrency ended the quarter with a rate of about $18,700, it can be assumed that Tesla sold its savings a little earlier, when the rate was more profitable.
In February 2021, Tesla announced that it had purchased $1.5 billion worth of bitcoin, and as a result of the announcement, the price of the cryptocurrency went up. Later in the first quarter, the company sold off 10% of its qualifying savings, boosting quarterly earnings by $272 million. Until recently, no other purchases or sales were reported.
The automaker began accepting bitcoin as a form of payment for its cars in March last year, but just six weeks later, Musk suspended such sales, citing the potential environmental impact of bitcoin mining, and has not yet revisited the issue.
In order not to miss a buy signal, subscribe and stay tuned for new ideas. Every day I post 10 profitable ideas a day.
