- Tesla sold 10% of its bitcoin holdings during the last quarter
- The company sold its holdings for $272 million
- CEO Elon Musk denied that the company was seeking an exit from its Bitcoin investment
Tesla shed some of its Bitcoin holdings for a $272 million, with owner Elon Musk stating that the move was carried out to “prove liquidity of Bitcoin” rather than any suggestion of a lack of faith in the digital currency. Tesla caused the price of Bitcoin to rocket in February when it announced that it had bought $1.5 billion worth of the asset the prior month, and some have seen the sale of 10% of its holdings as a sign that it was only seeking profits from the trade. These claims have been refuted, with Musk adding that he has sold none of his personal stash of bitcoin.
Tesla Bitcoin Sale Brings in $272 Million
The Tesla bitcoin sale was referenced by Tesla CFO Zach Kirkhorn during an earnings call yesterday, where he cited “gross margin improvement driven by further product cost reductions and sale of Bitcoin” as one of the company’s revenue streams in the prior quarter.
Documentation from the call shows that ‘proceeds from sales of digital assets’ brought in $272 million, with crypto Twitter soon abuzz with news that Tesla had shipped some bitcoin just weeks after buying it. Musk chipped into the conversation in reference to a tweet from Barstool Sports’ Dave Portnoy who accused Tesla of manipulating the Bitcoin price by announcing the buy up and then dumping at a higher price:
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
More Companies to Follow Suit?
Tesla is the biggest corporation do far to have confirmed that they hold bitcoin on their balance sheets, but there are suggestions that this could change as the world’s companies reveal their quarterly earnings this week:
RUMOUR: Facebook will annouce they hold #Bitcoin on their books when they release their quarterly results after trading closes tomorrow
— Alistair Milne (@alistairmilne) April 27, 2021
