Elon Musk’s Tesla Holds $218 Million in Bitcoin
Despite the bear market and Twitter war, Tesla continues to be one of the major corporate Bitcoin holdings.
According to data disclosed by the electric vehicle maker before its third-quarter investor relations call, Tesla’s Bitcoin holdings remain constant from the second quarter of 2022.
In a report made public on Wednesday, Tesla states that it still retains $218 million in Bitcoin. Tesla said in July that it has sold 75% of its Bitcoin assets or around $936 million at the time. After the transaction, Tesla declared at the end of June that it continued to retain “digital assets” worth $222 million on its financial sheet.
Musk said on the Q2 investor call that the business sold its Bitcoin to free up cash while China’s COVID lockdowns continue. Given the unpredictability of COVID lockdowns in China, it was crucial for us to optimise our cash position, he stated.
Tesla is one of the biggest holders of Bitcoin by a publicly traded firm, behind only MicroStrategy with 130,000 BTC (about $2.48 billion) and Galaxy Digital Holdings with 16,400 BTC (approximately $313 million).
Musk’s desire to purchase Twitter and subsequent court struggle over wanting to back out of the transaction did not influence the decision at the time, nor does it seem to have altered the company’s attitude on cryptocurrencies.
In September, hacked communications revealed the world’s wealthiest man discussing the probable future of the popular social networking platform with numerous internet entrepreneurs, including Block Inc.’s Jack Dorsey and FTX’s Sam Bankman-Fried. One proposal proposed accepting Musk’s favoured cryptocurrency, Dogecoin, as a form of payment.
Musk said that the plan was to require users to pay a small fee to register a remark on-chain, which would significantly reduce spam and bots by charging 0.1 Doge to submit or repost comments.