Tesla didn’t updated their Crypto Holding in third Quarter
Tesla, sell off its 75% holding in the second quarter, mentioning the unexpected lockdown be the reason for the sale. But no updation in the stock holding was made neither a sale nor purchase happened in the third quarter.
Tesla’s Earlier Share holding and returns from Bitcoin –
As per the reports Tesla hasn’t bought or sold off any Bitcoin in its third quarter. Tesla completed its second quarter with just $218 million invested in bitcoin (BTC), down from $1.26 billion in the previous three quarters. The company mentioned it realized a gain of about $64 million on the sale of its holdings of digital assets in the second quarter, which was offset by impairment charges of $170 million on the remainder of its bitcoin token, resulting in the net cost of $106 million on its profit and loss statement.
CEO’s perspective on the sale –
The value of the digital assets remained at $218 million, the same as they were at the end of its second quarter. When Tesla surprised some investors by selling $936 million worth of bitcoin, or approximately 75% of its total holdings, in order to raise cash. Also, the company stated the cause to sell its Crypto Asset holding as “the uncertainty of the COVID lockdown in China,”. But still, Tesla is supporting Bitcoin holding and buying also further added to the statement that “the sale should not be taken as some verdict on bitcoin.”
Also, Tesla reported no impairment charges to the value of its bitcoin holdings, as the price of the crypto token remained almost the same at the end of both the second and third quarters at slightly under $20,000.
Fluctuation of this decision on Crypto Assets Prices –
But the price of bitcoin fell about 1.7% on the initial news at the time but soon regained its losses after the statements from the Company and CEO itself.
In February 2021, Tesla announced it had purchased $1.5 billion worth of bitcoin, a move that caused the price of bitcoin to surge. Later in that first quarter, the company trimmed its bitcoin position by 10%, a sale that boosted that quarter’s earnings by $272 million. Also succeeding with the sale of 75% of its total holding ended up with a gain of about $64 million a return It had not bought or sold any more bitcoin until this year’s third quarter.
