Tesla Benefits $272 M Selling 10% of Its Bitcoins

by in Cryptocurrency News

Tesla sells 10% of its BTC

On Monday electronic car company Tesla reported its financial results for the first quarter of this year.

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It became known that the business owned by Elon Musk sold 10% of its $1.5 Billion worth of Bitcoin holdings acquired in February.

The report stated that Tesla holds and may invest in digital assets that can be volatile and include risks. In January 2021 the Audit Committee of our Board of Directors approved an updated investment policy, the aim of which is to provide more flexibility to further diversify and maximize cash returns. This doesn't require to have adequate operating liquidity.

The move brought $101 M to the company's total revenues. During the Q1 Tesla's net income reached $438 Million, which is a new all-time high for the company.

On March 24 Tesla announced accepting Bitcoin as a payment method. The community was impressed by the news. Binance CEO CZ posted that buying crypto and selling it later doesn't surprise him.

Major BTC supporter, the founder of Barstool Sports David Portnoy tweeted that he doubts if Musk initially bought BTC to boost its price and sell afterwards. Musk replied to Portnoy saying the opinion is incorrect and that not him, but Tesla sold some portion of its BTC holdings to prove liquidity of Bitcoin as an alternative to holding cash on the balance sheet.

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