Tesla’s most recent financial report reveals that it held the same amount of stock during the third quarter. In contrast, the business sold a significant amount of its Bitcoin reserve in the second quarter. That means what, exactly?
Tesla experienced record second-quarter sales.
Tesla’s megalomaniacal CEO, Elon Musk, revealed in February 2021 that his business had purchased 45,000 Bitcoins worth $1.5 billion. The main digital asset was headed for an unheard-of increase at the moment. In fact, the price of a single token of Bitcoin had hit an all-time high of $68,992. With addition to allowing clients to pay for his automobiles in cryptocurrency, the billionaire had stated that he intended to “diversify his financial flow”. Musk had reversed course, though, citing “environmental considerations”.
Tesla did a 180-degree pivot by opting to sell 75% of its Bitcoin holdings in the second quarter of 2022. The irrational businessman used the Covid-19 outbreak in China as his justification. He felt that the situation was extremely ambiguous and that “it was crucial for us to optimize our cash position.” Musk made it clear that this should not be seen as a judgment on the prominent digital asset, though. The electric vehicle firm received at least $936 million from this operation.
During the first quarter of 2022, the company had already sold roughly 10% of its BTC digital assets. At the time, this equaled $272 million. Following this action, Tesla had earned a profit of $110 million.
Third quarter of peace for Tesla
According to Tesla’s third quarter report, the corporation has $218 million in digital assets as of right now. There doesn’t appear to have been any asset value loss stated in this balance statement, which was released on October 19. According to current Bitcoin values, Elon Musk’s business reportedly owns about 9,720 BTC.
In a brand-new chapter of the soap play involving the sale of Twitter, the billionaire has declared his desire to repurchase the social media platform. It is still improbable that digital assets will be sold to pay for this transaction. Indeed, after a particularly severe crypto winter, Bitcoin appears to be moving toward a more pleasant time. Therefore, it would be advisable to hold off on selling anything until the asset starts to increase in value.
According to rumors, the billionaire might use the Lightning Network to establish up a crypto payment system on the platform if he gains control of Twitter. CEO of the Strike app, Jack Mallers, stated:
If I was Elon Musk, had a global audience in a global network (Twitter), what would stop me from allowing my users to pay with their phone at Starbucks? What’s stopping me from transferring money via Twitter? Elon Musk has the opportunity to build payment systems traditionally not accessible to Twitter.
The $500 million Elon Musk acquisition is supported, according to the Binance trading platform.
Since there has only been a very little decline of 0.05% over the past five days, the price of Bitcoin is now very constant. It is currently worth $19,586. However, many investors believe the crypto winter is coming to an end and anticipate a dramatic surge in the near future. BTC appears to have crossed a significant barrier level. However, there are many who believe the digital asset will drop under $12,000 in the future.
