Tesla has recently revealed the earnings it had earned during 2021’s first quarter i.e. 1st January 2021 till the end of 31st March 2021. Although the company had been able to earn a lot of profits, yet the balance sheet made some shocking revelations as well. The results might not be shocking for many but to Bitcoiners, the results were utterly surprising.
End Q1 results showed that Tesla had earned handsome profits but also sold some of the Bitcoins it had purchased during the period. Bitcoiners were concerned that how come Tesla, which had invested US$1.5 Billion into Bitcoin lately, had sold a portion of its Bitcoin holding. They assumed that if Tesla sale Bitcoin, then probably Tesla’s CEO/Technoking, Elon Musk, could do so as well.
In order to satisfy his fans, Musk has had to join Bitcoiners’ discussion which was debated on Twitter’s platform. Musk clarified that his company has a long affiliation with Bitcoin and would never ever end its support towards the coin. However, there are times, when companies like Tesla, have to make some policy decisions in good faith, said Musk. He clarified that the selling of Bitcoins by the company was one of the policy decision which warranted the sale. Furthermore, he told that the sale was essential for proving the element of liquidity within its balance sheet.
In addition, Technoking also confirmed that though Tesla may have lost a few Bitcoins, he has never done anything like that. In fact, he stated that throughout his career he had acquired a large number of Bitcoins personally. Yet he had never desired to let go any of his Bitcoins, not even once, re-assured Musk.
But even after disposing of a small portion of Tesla’s Bitcoin holding, the company still holds one of the highly valued Bitcoin holdings. This fact was duly endorsed later on by the Securities & Exchange Commission (SEC) as well. SEC apprised that the Bitcoin holing belonging to Tesla now holds a value of US$ 2.48 Billion.
It was indicated by SEC that the authority received documents from Tesla confirming that the company had bought Bitcoins against US$ 1.5 Billion. The documents further showed that Tesla has also integrated Bitcoin as a mode of payment towards the purchase of its electric vehicles. However, the sales on the basis of Bitcoin are being done in designated areas and regions only, depending on the respective laws of the regions. Tesla also opted to sell some of the Bitcoins in mid-March, suggested the documents presented by Tesla before SC.
It was also further confirmed that only US$ 272 Million worth of Bitcoins were in fact sold at that time.
At the time of Bitcoin purchase by Tesla in mid-March, one unit of Bitcoin amounted to US$ 59,000 roughly. However, since that time, the value of Bitcoin has gone down a little bit resulting in a short decline from US$ 2.48 Billion to US$ 2.31 Billion.