Elon Musk’s Tesla Says Bitcoin Is A Liquid Alternative To Cash
For the sake of illustrating bitcoin’s “long-term potential,” Tesla just filed a document with the Securities and Exchange Commission.
According to Tesla Inc.’s latest SEC filing, bitcoin has “long-term promise” and is “a liquid alternative to cash,” which is why the company continues to support it. The company’s quarterly report also said that it had not sold any of its bitcoins in the preceding quarter.
Tesla spent $1.5 billion on bitcoin in the first quarter of 2021, according to an SEC report at the time. Specifically, Tesla said in its statement that the investment “provides us with additional freedom to further diversify and optimise returns on our capital that is not necessary to maintain appropriate operational liquidity.”
In its Q1 2021 filing, Tesla also said it will accept bitcoin as payment for products and services in the future. The company’s CEO, Elon Musk, got more involved in conversations about bitcoin after hearing about the investment.
When Musk turned to Twitter on April 26th, 2021 to explain Tesla’s decision to sell 10% of its bitcoin holdings during the second quarter of that year, he stated:
In essence, Tesla sold 10% of its assets to demonstrate the liquidity of bitcoin as an alternative to storing cash on a balance sheet, according to his post.
It was revealed in an SEC filing that Tesla made a profit of $128 million as a result of the aforementioned transaction. Then, on June 13, 2021, Tesla CEO Elon Musk caved into market environmental worries by withdrawing the option of using bitcoin as payment until there was “validation of appropriate (50 percent) clean energy consumption by miners with the good future trend,” he claimed, according to CNBC.
In 2021, Tesla’s first investment in bitcoin was estimated to reach more than $1 billion in profit. Tesla just announced cooperation with BlockStream and Block on April 8, 2022, indicating that the company’s energy equipment will be leveraged for a $12 million bitcoin mining facility as part of the deal.
Tesla’s return to the bitcoin ecosystem as a clean mining player completes the entire cycle of its $1.5 billion BTC purchase, environmental activism, and BTC reserves.
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