Tesla sold part of its Bitcoin holdings for $272 million

Electric-car maker Tesla sold part of its holdings in the first cryptocurrency, Bitcoin, for $272 million. The information comes from the first-quarter 2021 report.

Tesla booked a profit of $101 million from the sale of the digital gold.

In early February the company invested $1.5 billion in Bitcoin. Chief Financial Officer Zak Kirkhorn described this as a good placement for cash reserves. He said Tesla is comfortable with the liquidity of the first cryptocurrency and will continue to accumulate digital assets from the sale of electric vehicles for Bitcoin.

“We believe in the value of Bitcoin in the long term,” said Kirkhorn.

According to Elon Musk, the electric-car maker sold 10% of its Bitcoin holdings to test market liquidity.

No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.

— Elon Musk (@elonmusk) April 26, 2021

Earlier, Musk described Tesla’s investments in digital gold as ‘quite risky’ and hinted that it wasn’t his decision.

According to analysts, the unrealised gains from Tesla’s cryptocurrency investments were higher than those from selling electric vehicles in 2020.

Earlier, in March, Musk said that Tesla had begun selling Bitcoin in the United States. He said the company does not plan to convert cryptocurrency into fiat money.

R3GJMT_TSLA_Q1_2021_Update_5KJWZA by ForkLog on Scribd

Subscribe to ForkLog news on VK!