Tesla, the electric vehicle company headed by Elon Musk, did not sell any Bitcoin (BTC) during the first quarter of 2023, according to reports. This news is likely to be welcomed by Bitcoin investors and enthusiasts, as Tesla has been a major proponent of the cryptocurrency in recent years. The decision not to sell any BTC could be seen as a bullish signal for the future price of the digital asset, as it suggests that Tesla is continuing to hold a positive outlook on Bitcoin. The news is likely to attract attention from cryptocurrency investors and those looking to follow Tesla’s investment strategy.
Tesla Holds onto BTC in Q1 2023, Skipping Any Trading
Tesla, one of the biggest electric vehicle manufacturers, has not bought or sold any Bitcoin during the first quarter of 2023. The company’s latest crypto transaction occurred in Q2 2022 when it sold 75% of its total Bitcoin holdings to deal with soaring production costs. However, Tesla continues to hold around $345 million worth of 11,950 BTC, maintaining its position as one of the biggest corporate holders of the largest cryptocurrency.
Tesla CEO Elon Musk announced that the company had not touched its Bitcoin holdings in the first three months of the year. The EV maker has not purchased or sold any BTC for three consecutive quarters, after the company’s major transaction in the crypto space occurred in Q2, 2022, when it disposed of $936 million worth of its Bitcoin holdings.
According to Musk, the move was crucial to help the company address the immense production costs in China, where another COVID-19 lockdown hampered local economies, pushing production expenses to unprecedented levels. The proceeds from this sale allowed the company to meet unforeseen expenses. However, Musk stressed that he did not liquidate his crypto holdings, including Bitcoin, Ethereum (ETH), and Dogecoin (DOGE).
In January 2021, Tesla made a massive foray into the crypto space by buying $1.5 billion worth of BTC, adding momentum to the already-hot bull market and spiking the asset’s valuation to a new all-time high above $42,000. A few months later, the EV giant allowed customers to purchase company vehicles using Bitcoin, which triggered another price increase.
Despite these optimistic buying announcements, the honeymoon period between Tesla and Bitcoin ended in May 2021, when Tesla suspended the payment method citing the high energy consumption of the network. BTC plummeted from $55K to $52K in just a few minutes after the disclosure. Musk later suggested that Tesla would resume accepting BTC payments for its cars once renewable energy becomes more dominant in the mining process. Currently, over 52% of the network’s energy comes from renewable sources, according to some recent studies.
In conclusion, Tesla is one of the biggest corporate owners of Bitcoin and other cryptocurrencies, and its founder and CEO, Elon Musk, is a big advocate of the digital assets. The company continues to hold onto its BTC, preferring not to sell any for more than a year.