According to Tesla’s most recent balance statement, the corporation has $184 million worth of bitcoins worth. Despite the crypto winter and the spread of the cryptocurrency ecosystem, Tesla did not sell any digital assets during the fourth quarter of 2022.
Tesla’s Digital Assets Valued at $184 Million
On Wednesday, Tesla Inc. (Nasdaq: TSLA) revealed its Q4 2022 financial results. Net digital assets for the company are $184 million, down from $218 million in the prior quarter, according to its balance sheet. Based on the company’s other financial statements, there were no purchases or sales of digital assets during the fourth quarter.
The majority of the digital assets owned by the electric car company are bitcoin. Its cryptocurrency holdings have lost value due to changes in the price of bitcoin, resulting in a $34 million impairment charge. At the time of writing, the price of one bitcoin is $23,087; in 2022, it dropped from roughly $47,8K to about $16.6K.
Tesla has not disclosed how many bitcoins it currently holds, but an industry estimate indicates that it may hoard roughly 9,720 BTC. Along with bitcoin, Tesla also has a small quantity of the meme cryptocurrency dogecoin (DOGE), which it got by selling some items. In January of last year, the business started to accept dogecoin for select purchases.
In 2021, Tesla spent $1.5 billion on BTC purchases; since then, no additional purchases have been made. However, the business sold off nearly 75% of its BTC holdings in the second quarter of last year. When the Covid lockdowns in China were uncertain, Tesla’s CEO Elon Musk stated that the company sold its Bitcoin to maximise its cash position. He added that this should not be interpreted as a judgement on bitcoin because “we are certainly open to raising our bitcoin holdings in the future.” Additionally, he mentioned that the business didn’t sell any DOGE.
Dogecoin, ether, and bitcoin are all held privately by Elon Musk. In March of last year, he tweeted that he still owned all three cryptocurrencies and would not sell any of them. The billionaire said, “I still own & won’t sell my bitcoin, Ethereum, or doge.
Musk reiterated: “There’s going to be bumps along the way and we’ll probably have a fairly severe recession this year,” during Tesla’s earnings call with analysts on Wednesday afternoon. Hopefully not, but probably the Tesla CEO emphasized: Although “one can’t foresee the short-term stock value,”
But long term, I’m convinced that, Tesla will be the most valuable company on Earth.
What do you think about Tesla holding bitcoin throughout the crypto winter? Let us know in the comments section below.