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HomeCryptoCurrencyTesla tests Bitcoin's liquidity with $ 272 million sale

Tesla tests Bitcoin's liquidity with $ 272 million sale

The US manufacturer of electric vehicles, Tesla Motors, presented its balance sheet for the first quarter of 2021. In the report, the company reported sales of digital assets (bitcoins) equivalent to 272 million dollars.

The CEO of the corporation, Elon Musk, explained that the sales of the company were to demonstrate the liquidity of Bitcoin (BTC) and that he has not sold their cryptocurrencies. In other words, Tesla did not dispose of a percentage of its crypto assets as a reaction to the behavior of the market, but to expose the operation of the network.

«I have not sold any of my bitcoins. Tesla sold 10% of its holdings essentially to demonstrate the liquidity of Bitcoin as an alternative to keeping cash on the balance sheet, “the executive clarified through a message on Twitter. Earlier it had been speculated that Musk had sold his BTC.

Tesla ratified its commitment to be a long-term bitcoin company with millionaire investments in the first cryptocurrency and direct sales of its vehicles in exchange for bitcoins . This was reported by the company’s financial director, Zachary Kirkhorn.

The director assured that Tesla’s intention is to maintain its positions and continue to accumulate BTC from the purchases that make their clients with the cryptocurrency. Kirkhorn’s statement, along with the message published by Musk, appeased the criticism that emerged over the Tesla corporate sale.

In fact, the company admitted that it made $ 101 million in profit from the liquidation of its BTC, something that, together with the reduction of production costs, was what drove the growth of Tesla in the first quarter of the year. Revenues from the sale of bitcoins become more relevant due to the logistics and dispatch problems faced by the company due to the COVID-19 pandemic.

Tesla reported the sale of a portion of its bitcoins in its quarterly revenue report. Source: Tesla.

Tesla in the bitcoin universe

It should be remembered that Tesla bought about 1,500 million dollars in bitcoin in January, a movement that was not made public until February, as reported by CriptoNoticias. The corporation’s endorsement of bitcoin pushed its price to close to $ 44,000 per unit, an obvious positive reaction for the market and traders.

The $ 1.5 billion invested in bitcoins by Tesla would represent around 48,000 BTC held by the company , according to records from Bitcoin Treasuries (BT). However, after the sale announced and considering the current price of bitcoin, of $ 55,000, then the company would have sold almost 5,000 BTC.

According to BT, the $ 1.5 billion Tesla invested in bitcoin has already turned into $ 2.65 billion dollars, that is, the company has almost doubled the capital. It is important to mention that Tesla decided to invest part of its cash assets in bitcoin as a safeguard alternative and at the low interest rates that exist in the traditional financial system.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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