Tesla maintained its Bitcoin holdings in Q4 amid market volatility


The manufacturer of EVs continues to keep its estimated 9,720 Bitcoin, incurring just a $34 million loss on its investment owing to price drops by the end of 2022.

Despite selling 75% of its Bitcoin holdings in the second quarter of 2022, electric car company Tesla declined to sell any more during the second half of 2022.

In its Q4 results report released on January 25, Tesla’s financials indicate that the company neither acquired nor sold any of its Bitcoin for the second consecutive quarter. Despite the severe market upheaval in November and December after the collapse of FTX, this was the case.

The business had $184 million in digital assets as of December 31, down from $218 million at the end of the previous quarter owing to $34 million in impairment charges incurred as Bitcoin’s price decreased between September and December.

On September 30th, the price of Bitcoin was over $19,500; but, by December 31st, it had decreased by almost 15% to $16,600.

After selling 75% of its Bitcoin in the second quarter of last year, the EV maker retained its Bitcoin into the third quarter. The Q2 transaction added $936 million to Tesla’s cash on hand and generated a profit of $64 million.

Elon Musk, CEO of Tesla, noted at the time that the transaction was intended to “show Bitcoin’s liquidity as an alternative to storing cash on the balance sheet.”

However, Tesla did not mention its Bitcoin holdings or stance on Bitcoin during its most recent earnings call on January 25. Tesla is projected to own 9,720 BTC.

Overall, Tesla achieved $5.7 billion in earnings on $24.3 billion in sales for the fourth quarter, with gross margins reaching their lowest point in five quarters. In 2022, the firm had a total profit of $20.8 million on sales of $81.4 billion.

The revenue total fell short of analyst projections, while the profit exceeded expectations. The closing price of Tesla’s shares was roughly 0.40 percent higher than its opening price. According to Google Finance, it continued to trade well after hours, gaining almost 4.6% at the time of writing.

Also Read: Bitcoin recovers $23,000 to reach a bullish golden cross

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