Elon Musk-led Tesla announced that it sold $272 million worth of bitcoin in the first quarter of 2021. With the price of bitcoin appreciating since the acquisition, the company’s BTC value may have grown to $2.72 billion, indicating that Tesla likely sold 10% of bitcoin holdings. According to the slide deck, selling bitcoin helped the firm make a “$101 million positive impact.”
No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
— Elon Musk (@elonmusk) April 26, 2021
Tesla had purchased $1.5 billion worth of bitcoins in January.
The electric vehicle manufacturer made headlines back in February after it was revealed that it bought BTC worth $1.5 billion in January 2021. Tesla’s bitcoin purchase at the time caused a spike in the price of the largest cryptocurrency by market capitalization. The firm also announced that it was accepting the leading cryptocurrency as a payment method for its vehicles. Meanwhile, the company stated that the bitcoin received would not be converted into fiat. During the last weekend, bitcoin plunged to as low as $47,000 after earlier reaching an all-time high (ATH) of $65,000. Bitcoin is changing hands at $54,750 at the time of writing.
Major institutions warm up to cryptocurrencies.
Major institutions have recently been adding bitcoin to their balance sheets or as a payment method in their platforms. The leading cryptocurrency has witnessed a massive winning rally this year, reaching several all-time highs frequently. Bitcoin has gained more than 80% this year. As reported earlier, major wine retailer Acker announced that it was accepting Bitcoin, Ethereum, and Dogecoin as payment methods for its wines. Earlier, PayPal announced to enable its US customers to deal in cryptocurrencies. The unprecedented growth of bitcoin has also attracted regulators’ eyes from the world as governments work to regulate the industry.