Tesla Maintains Bitcoin (BTC) Holdings in Q4 2023

Source: Photo by Aleksi Räisä on Unsplash

Tesla, the electric vehicle pioneer led by Elon Musk, has held onto its Bitcoin ownership steady through the fourth quarter of 2023.

Tesla's latest earnings report, released in January 2024, revealed no changes in its Bitcoin portfolio. The company still holds approximately 9,720 BTC, valued at around $387 million.

Tesla's decision to retain its Bitcoin assets comes amid a challenging period for the company's stock. In January 2024, Tesla's stock value experienced an almost 16% decline, continuing a downward trend that began earlier in the year. However, this bearish trend in the stock market did not deter Tesla from holding onto its cryptocurrency.

Interestingly, Tesla's vehicle sales paint a different picture. The company exceeded Wall Street delivery predictions in Q4 2023, with a record 484,507 vehicles sold and a total of 1.81 million vehicles for the year. This performance surpassed their initial target of 1.8 million vehicles, showcasing the company's strong operational capabilities.

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Tesla's Bitcoin Investment Journey

Source : Photo by Manny Becerra on Unsplash

The company's journey with Bitcoin began in February 2021 with a substantial investment of $1.5 billion, acquiring approximately 43,000 BTC.

Initially, Tesla even accepted Bitcoin as a payment method, although this policy was later reversed. Despite selling a significant portion of its holdings in 2021 to bolster its cash position during COVID-related uncertainties, Tesla retained the remainder of its Bitcoin assets.

Tesla's involvement with Bitcoin started in February 2021 when the company invested $1.5 billion, acquiring around 43,000 BTC. At the same time, Tesla announced the acceptance of Bitcoin as a form of payment.

However, subsequent decisions led to the reversal of this policy, with the company reducing its Bitcoin holdings. In early 2021, Tesla sold 4,320 BTC, and by the end of 2021, Tesla disposed of 75% of its remaining holdings at a loss.

Tesla's consistent Bitcoin ownership positions it as the fourth-largest public entity with a substantial Bitcoin portfolio, trailing leaders such as MicroStrategy, Galaxy Digital Holdings, and Marathon Digital Holdings.

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