Tesla holds $2.48 billion of Bitcoin

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U.S. automaker Tesla bought $ 1.5 billion worth of Bitcoin earlier this year, and the company’s investment already seems to be paying off as it now holds $ 2.48 billion of the cryptocurrency.

In a filing with the US Securities and Exchange Commission in January this year, the automaker announced that it had updated its investment policy to give the company “more flexibility to further diversify and maximize returns” on its cash Offer.

Tesla also announced that it would soon be accepting payments in Bitcoin for its vehicles, which helped raise the price of the cryptocurrency even further.

While the company has not yet accepted Bitcoin for payments, Tesla is clear on a support page on its website that other cryptocurrencies are not currently supported.

“Currently, Tesla only accepts Bitcoin – not Bitcoin fork products (like Bitcoin Cash and Bitcoin SV) or any other type of digital asset. (Our wallet does not receive or recognize any other digital assets.) Please only send us Bitcoin as other digital assets sent may be lost or destroyed (and we are not responsible in this case). “

Growing investments

In a new filing with the SEC regarding its first quarter performance, Tesla found that the fair market value of bitcoin in its wallet was $ 2.48 billion as of March 31.

If the company sold the bitcoin it had gained since its first investment in January, it could be ready to make around $ 1 billion. While Tesla has no plans to sell the bulk of its profits anytime soon, it sold 10 percent of its Bitcoin holdings in the first quarter.

According to Tesla, the proceeds from the sale of its Bitcoin holdings were $ 272 million with a “positive effect” of $ 101 million. However, the company also announced that it recorded $ 27 million in impairment losses on its Bitcoin investment in the first quarter of this year.

Tesla’s purchase of such a large amount of Bitcoin was a big deal for cryptocurrency as it helped raise the price while building trust in it. In fact, other companies like Square have since followed suit, purchasing $ 170 million worth of Bitcoin in late February.

Via Reuters