Tesla’s Bitcoin Holdings Remain Unchanged for Q1 2022

UTC by Bhushan Akolkar · 3 min read
Tesla’s Bitcoin Holdings Remain Unchanged for Q1 2022
Photo: Depositphotos

Tesla said that its Q1 2022 holdings of Bitcoins remain unchanged. Furthermore, it didn’t report any losses as the BTC price during the start and the end of the quarter was the same.

On Wednesday, April 20, electric car manufacturing giant Tesla Inc (NASDAQ: TSLA) reported its first-quarter earnings (Q1) 20222. For the second quarter straight, Tesla’s Bitcoin holdings remain unchanged at $1.26 billion.

The automobile giant made its first foray into Bitcoin last year in February 2021. The company said that since then it hasn’t bought or sold any crypto assets. Furthermore, the company hasn’t recorded any impairments to the value of BTC that it holds as the Bitcoin price has remained almost flat over the last quarter.

However, during the third quarter of 2021, Tesla reported a $51 million Bitcoin impairment loss reflecting a decline in the BTC price. The impairment losses are a required disclosure if the price of the asset falls during a quarter.

For the first quarter of 2022, Tesla reported revenue of $18.8 billion. This was clearly exceeding the Street estimates of $17.80 billion. Overall for Q1, Tesla’s adjusted earnings per share (EPS) stood at $3.22 against the analysts’ expectations of $2.26.

On Wednesday, the Tesla (NASDAQ: TSLA) stock took a 4.96% plunge giving a closing under $1000. However, just as the company announced its results during the aftermarket hours, the stock price is up by 5.52%.

Ever since its BTC purchases last year in February, Tesla has been playing a bit of a flip flop and Tesla’s Bitcoin holdings were changing throughout the year. Soon after its initial BTC purchases, the company was quick to announce its decision to accept BTC payments against Tesla purchases only to withdraw it later in two months in July citing environmental concerns. But later in October 2021, in an SEC filing, Tesla said that it was leaving its door open to crypto payments.

Bitcoin Back Above $41,000

After a drop to $39,000 and below earlier this week, the Bitcoin price made a quick reversal. As of press time, Bitcoin is currently trading at $41,524 with a market cap of $789 billion. As per on-chain data, long-term holders continue to accumulate more and more Bitcoins.

Furthermore, data from IntoTheBlock shows that “addresses holding less than 10 bitcoins have increased their holdings dramatically in 2022″. In the recent newsletter, Marcus Sotiriou, analyst at the UK based digital asset broker GlobalBlock wrote:

“Bitcoin on-chain metrics continue to be bullish as bitcoin exchange reserves plummet further. “This signals that the proportion of long-term holders are increasing as fewer people are willing to leave their Bitcoin on exchanges.”

On Tuesday, 21Shares and ETF Securities announced their decision to launch a spot Bitcoin ETF in Australia next week.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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