In the first quarter of 2021, Tesla sold a portion of its Bitcoin (BTC) reserves for a total of $272 million.
The electric vehicle maker had bought $1.5 billion worth of BTC.
Tesla sells some bitcoins
In a conference call with investors, Tesla presented its Q1 2021 results and revealed $272 million in proceeds from the sale of bitcoins. According to Tesla CEO Elon Musk, the company sold 10% of its holdings primarily to prove the liquidity of BTC.
Zach Kirkhorn, Tesla’s CFO, said, “Tesla is watching the market and listening to what our customers are saying, but from a corporate cash flow perspective, we’re pretty happy with the liquidity of bitcoin.” Kirkhorn also explained that Tesla invested in BTC to earn a return on its excess cash in a very low interest rate environment.
The sale of $272 million in bitcoins contributed to a record $438 million in quarterly net income for Elon Musk’s company.
Still 42,000 BTC in Treasury
We are not aware of the exact date of Tesla’s bitcoin acquisitions, but the automaker reportedly now holds 42,000 BTC on its balance sheet.
At the current price of $55,000, Tesla’s investment is worth about $2.31 billion, a profit of more than $1 billion over its initial investment.
Since the end of March, the automaker began accepting payments in BTC. The famous entrepreneur had explained that payments received in crypto-currency would not be converted into dollars. This initiative was confirmed yesterday by Zach Kirkhorn: “Tesla believes in the long-term value of bitcoin, so we intend to hold on to what we have and continue to accumulate BTC from our customers’ payments when they buy vehicles.”