For the past seven consecutive quarters, Tesla, led by Elon Musk, has kept its Bitcoin reserves, according to the company’s Q1 2024 earnings statement.
Tesla Maintains BTC Holdings In Q1 2024
Tesla, headed by Elon Musk as CEO, remains firm in keeping its significant Bitcoin reserves, unfazed by the volatile Bitcoin market. This action is consistent with Tesla’s long-term investment approach in blockchain technology.
During the first quarter of 2024, Tesla didn’t buy or sell any Bitcoin according to their recently released financial report.
Bitcoin Holding Value Surges
For the past 18 months, the firm has kept its Bitcoins, amounting to 9,720 coins, without selling or trading them, demonstrating a steady strategy towards its digital currency holdings.
In the last three months, the worth of Tesla’s Bitcoin investments has noticeably increased, now estimated at more than $711 million. This growth can be primarily linked to the recent approval of a Spot Bitcoin Exchange-Traded Fund (ETF). The approval of this fund signals the possibility of additional value gains in the near future, particularly following the Bitcoin Halving event.
BTC HODLing Contrasts Past Actions
Tesla chose to keep its Bitcoin instead of selling off 75% of it as they did in Q2 2022, when they sold $936 million worth of Bitcoin to strengthen their finances following the economic downturn caused by Covid-19 and its impact on Tesla’s production facilities. However, since then, the company has consistently held onto its Bitcoin reserves.
In Tesla’s 2023 annual earnings report, it was revealed that the company held approximately 9,720 Bitcoins, with a market value of around $184 million at that moment in time. This amount remained constant throughout Q3 2023.
Financial Challenges Amidst Strategic BTC HODL
Tesla’s Bitcoin holdings remain unchanged, but its financial situation elsewhere is problematic. The Q1 2024 earnings report showed a substantial decrease in revenue, dropping to $12.3 billion instead of the forecasted $21.4 billion. This reduction can be attributed to ongoing challenges within the automotive industry, mirroring the struggles encountered during Q4 2023.
Furthermore, Tesla disclosed a free cash flow deficit amounting to $2.5 billion. This signifies financial challenges as the company pushes for new advancements and broadens its consumer base.
Market Response and Future Plans
Although Tesla’s earnings didn’t meet the predicted revenue and earnings targets, the company’s stock experienced a 5% rise in after-hours trading post the results announcement. Currently, Tesla’s stock is valued at $144.61 during regular trading hours, representing a 13% decrease over the past five days and a significant 28% drop in value over the last month.
Elon Musk’s latest comment about possibly accepting Dogecoin for Tesla car purchases has rekindled excitement for the meme currency.
Among publicly traded companies, Tesla ranks fourth for holding the most Bitcoin, with a total amount less than that of Michael Saylor’s MicroStrategy, Galaxy Digital Holdings, and Marathon Digital Holdings.
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2024-04-24 15:28