Tesla, the well-known electric vehicle manufacturer, has made news by keeping its #BTC holdings at $184 million for the third consecutive quarter of 2023. Discussions and questions have been raised in the financial community by this firm position in the face of #crypto2023 market volatility.
š Despite Bitcoin's price climbing from around $28,000 at the end of the first quarter to approximately $30,500 at the close of the second quarter, Tesla did not adjust the valuation of its digital assets.
This decision is in line with current accounting rules, which don't permit an increase in the valuation of digital assets without selling them.
š° Tesla Cryptocurrency Journey
To understand the significance of this move, it's essential to revisit Tesla's history with #bitcoin . In early 2021, the company made headlines by investing $1.5 billion in Bitcoin. They further hyped Bitcoin's popularity by announcing plans to accept it as a form of payment for their electric vehicles, a move that sent shockwaves through the cryptocurrency and automotive industries.
However, this initial enthusiasm was short-lived.
In the second quarter of 2021, Tesla sold more than 30,000 Bitcoins, amounting to roughly 75% of their holdings, for $936 million. This marked a significant shift in their cryptocurrency strategy. In subsequent months, the company walked back its intentions regarding Bitcoin, creating uncertainty in the crypto community.
š Strong Financial Performance
Despite their unchanging Bitcoin stance, #Tesla reported a solid financial performance for Q2 and Q3 of 2023. In Q2, they exceeded analyst expectations with an adjusted earnings per share of $0.91 and revenue of $24.9 billion.
Tesla's stock has been on an upward trajectory, rising more than 124% since the start of the year. This outstanding stock market performance demonstrates the company's tenacity and accomplishment in the electric vehicle business.
š A Closer Look at Q3 Holdings
In the third quarter, Tesla's Bitcoin holdings remained stagnant at $184 million, continuing their unbroken streak of not purchasing or selling any Bitcoin. This consistency has sparked conversations about Tesla's long-term strategy in the world of #crypto .
š”Key Learnings
Tesla's consistent attitude on Bitcoin holdings, as well as its steady price despite market swings, show a shift in their cryptocurrency approach. While their initial enthusiasm for Bitcoin generated headlines, they have taken a more cautious attitude in recent years.
Despite this, Tesla's financial performance and stock market success remain strong, positioning the company as a major player in both the electric vehicle and cryptocurrency markets.
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