In its recent quarterly report, the electric car giant highlighted above-expected numbers much to the delight of investors, but also revealed the sale of large amounts of capital in Bitcoin and other assets.
Tesla sells part of crypto held on balance sheet to manage liquidity problems
$938 million is what Tesla made from the largest cryptocurrency sale by a publicly traded company.
The sale, or rather the “sell-off”, reportedly took place during the second quarter of the year, so in the time frame from April to June inclusive.
According to unnamed inside sources, the purchase price of these digital currencies would have been higher than the realization price, but the choice would be compensatory at least in the leaked and stated intentions of the CEO to cope with the uncertain timing and possible further lock downs in China, which have already done much damage to the company.
The digital currencies in the company’s portfolio would have been nominally $1.5 billion. However, in the wake of the crisis, the devaluation and price collapse has depleted some of these assets.
Currently, there appears to be $222 million left in tokens, mostly Dogecoin according to Elon Musk’s words.
The brilliant entrepreneur has said he is blindly confident about crypto and in particular Dogecoin and Bitcoin, a currency for which he has already announced a future of periodic purchases.
The massive sale of nearly $1 billion, which is to be considered a momentary necessity, indirectly also served to demonstrate how solid the digital currency asset is and how it does not depend on individuals, even those who move such figures.
The market crash was not affected proportionately during the months that the electric company’s sales of Bitcoin and other cryptos took place.
The collapses had begun much earlier, and it was not until July that interesting upward movements were seen that also allowed profitable trades, both short and long.
Bitcoin, inflation, and stock market performance
At this stage, Bitcoin has cleared itself of most of the miners and small investors so as to leave the field to HODLers and those who believe strongly in the project. This can also be seen in the volumes that are nevertheless slowly growing.
Tesla’s stock at the time of the quarterly report was trading at around $800 while today it stands at $808.46, up 5.10 from yesterday’s close.
Following the important check on the quarterly earnings report, Elon Musk also spoke about the price of his cars on the market, which in his opinion are far too high, explaining how over time he will try to trim list prices, something that to date has not yet been possible.
The price of electric cars, to compensate for rising costs and inflation, has been increased accordingly, contributing to the company’s excellent earnings performance.