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Tesla currently holds almost 43,200 BTC, with is worth nearly $2.5 billion at today’s price.
Tesla and Elon Musk’s investment in the crypto space is already proving to be a very good move so far as its stake in Bitcoin is already up by $1 billion. Bitcoin has rallied this past week and hit the $60K mark for the first time yesterday which was also a new five-month high this week.
According to Bitcoin Treasuries, an online monitoring resource, Tesla currently holds almost 43,200 BTC, with is worth almost $2.5 billion at today’s price. Tesla’s investment is now up by 65%, earning $1billion on what the electric automobile firm paid back in February when Elon Musk’s company revealed that it had added $1.5 billion in BTC to its balance sheet.
Tesla and its billionaire owner, Musk, have been delving deep into the cryptocurrency space for some time now. Tesla also announced that it was accepting cryptocurrency as a payment method shortly after investing $1.5 billion in Bitcoin.
CEO Elon Musk subsequently teased the Dogecoin community, stating that, the company was weighing up the potential of accepting the somewhat meme coin as payment for its electric vehicles. Surprisingly, Musk later revealed that Tesla was removing Bitcoin as a payment option, a move that sent the entire crypto space into turmoil as many had anticipated a spike in price as Dogecoin had after news broke of it being potentially listed as accepted crypto for Tesla payments.
Tesla however noted that they were not selling their stake in Bitcoin and planned to resume taking Bitcoin payments once the network shows a higher mix of renewable energy.
Musk cited the numerous concerns over the energy needs of the Bitcoin network as experts feared the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, and coal, which according to them had the worst emissions of any fuel.
Tesla then sold 10% of its Bitcoin investment holdings in Q2 which was roughly about 46,000 BTC at an average price of around $50,000 per token, according to reports. The company subsequently announced in its Q2 results report that it had made $128 million in profit from its Bitcoin sale.
Following the recent Bitcoin price breakout, Tesla’s net gains from its crypto holdings were equal to its income in Q2. The company’s net profit for the second quarter was $1.14 billion, the first time it had ever surpassed $1 billion. The earnings were part of the total revenue generated which was $11.96 billion, with around $10.21 billion coming from car sales. The remaining $354 million came through regulatory credit sales.
Tesla now joins the long list of company’s that have made unprecedented gains from Bitcoin investments. MicroStrategy, one of the companies that started the wave of institutional interest in Bitcoin, purchased $3.15 billion worth of Bitcoin in multiple buying rounds with the first purchase dating back to August 2020. The company’s net Bitcoin profits are now near $6.3 billion, almost twice the money it invested.