Tesla CEO Elon Musk has been one of the main reasons Bitcoin saw a tremendous value increase in recent years. But Musk’s love affair with Bitcoin didn’t continue as he announced his support for Dogecoin. The changes have affected Bitcoin investments because of its use. These changes have resulted from the mentioned company’s no more acceptance of Bitcoin. Instead, it has announced support for DOGE and its use to purchase merchandise and other products.
Recently, the same company announced the sale of its Bitcoin investments. According to the official announcement, it has sold more than 75% of its Bitcoin holdings. Many analysts were musing about their Bitcoin holdings after this considerable decrease. A recent SEC filing has disclosed the details of how much BTC it owns.
Here is a brief overview of the details of Tesla’s SEC filing and its Bitcoin worth.
Tesla and its Bitcoin investments
Tesla had made news because of its great investment in Bitcoin. According to its official announcement, it had invested $1.5 billion in Bitcoin in February 2021. The result was a surge in Bitcoin demand, raising its price value. The surge for Bitcoin continued till the closing quarter of 2021 when it neared the $70K mark. The following months saw fluctuations in its value as the market remained unstable.
The final blow came from a recession due to the geopolitical situation, creating an economic crisis. Since then, Tesla has seen a considerable decrease in the value of its Bitcoin investments. The result was a decision to off-load this burden as it could cost more as the economic situation worsened. The more than 50% fall in Bitcoin value suggests that the car-making company has lost a considerable amount.
As it recently sold Bitcoin due to the bearish market, it made $936 million in fiat currency. Musk’s decision to sell Bitcoin has been one of the main reasons social media users have flocked to crypto investments. Some even named it a betrayal as he left the market though he was the one who attracted investors.
The recent sale of Bitcoin and its current worth
Tesla has filed its second quarter (Q2) report to the Securities and Exchange Commission. The report shares the complete details of its Bitcoin activity. According to the report, Tesla is said to have lost $170 million due to market changes. While it was able to make gains of $64 million on its certain conversions of Bitcoin to fiat currency. It had purchased Bitcoin at $32K while selling some of its holdings in Q1 of 2021.
Tesla has said that it holds other digital assets other than Bitcoin. Though it hasn’t named the assets it holds, it has accepted that it holds DOGE. Tesla’s carrying value of digital assets is about $218 million. Bitcoin value has fluctuated for the last few weeks, and the value of these digital asset holdings might have increased.
Musk had said in a statement that the reason for their sale of Bitcoin was China’s Covid lockdowns. Also, he said that they hadn’t sold their Dogecoin holdings. The current situation will have lasting impacts on Bitcoin, as it saw when Tesla purchased a huge amount of Bitcoin.
Conclusion
Tesla, the car-making company, has disclosed its Bitcoin holdings in a recent SEC filing. It shared the details of the digital asset holdings in the Q2 report. The details show that it has Bitcoin holdings worth $222 million. It shows that the company is yet a significant shareholder in Bitcoin. While it also has other digital assets that are not specified in the report.
