Tesla remained a Bitcoin hodler in the second quarter of 2022

Tesla remained a Bitcoin hodler in the second quarter of 2022

Tesla, the electric car company led by Elon Musk, did not sell remaining Bitcoin supplies as planned in the fourth quarter of 2022, according to a filing published by the Securities and Exchange Commission (SEC).

Tesla's BTC holdings should be priced at around $245 million, which would be the final 25% of all Bitcoin the company purchased during the Crypto Bullrun of 2021.

Despite the crypto market crash the following year and the negative news that darkened the crypto ecosystem, such as the bankruptcy of major companies in the industry, Tesla continued to “hollow” some of its crypto assets, according to its Q4 and FY 2022 update.

Musk invests in opportunities

In the first quarter of 2021, Tesla purchased 43,200 BTC for $1.5 billion. The company held on to its Bitcoins for more than a year despite the outbreak of the COVID-19 pandemic, which led to massive layoffs and the closure of several US companies.

In July 2022, Tesla CEO Elon Musk announced that the company had to sell 75% of its Bitcoin for $936 million due to the increase in the company's production costs in China, which had risen to unprecedented levels in the wake of the coronavirus.

However, Musk clarified that the company is “open to increasing Bitcoin holdings in the future” and has nothing against BTC. He explained the reason for the sale was uncertainty surrounding the COVID lockdowns in China and the need to maximize the company's liquidity.

Musk also reported in March 2022 that he still owns his personal Bitcoins and has no intention of selling them.

As a general principle for those seeking advice from this thread, it is generally better to own physical things like a house or stocks in companies that you believe make good products than dollars when inflation is high.

I still own my Bitcoin, Ethereum or Doge fwiw and will not sell them.

— Mr. Tweet (@elonmusk) March 14, 2022

Tesla and its Bitcoin trust issues

Tesla was one of the first companies to invest large amounts of money in Bitcoin, and its initial purchase fueled BTC's upward move, driving it from around $20,000 to almost $70,000. However, due to Bitcoin's energy consumption, it began to lose confidence in its investment, leading Tesla to stop accepting Bitcoin payments for the purchase of its cars in May 2021. Bitcoin crashed shortly after, rising from $55,000 to $52,000 within hours.

In September 2022, Microstrategy founder Michael Saylor spoke out in defense of the Bitcoin mining industry, arguing that reports of increased carbon emissions from Bitcoin mining were “false.” He said that “99.92% of global carbon emissions come from industrial energy uses other than Bitcoin mining.”

Nevertheless, Tesla has not commented on Bitcoin mining since then. It is unclear whether the company plans to accept Bitcoin again in the future. However, Tesla's retention of 25% of its Bitcoin supply despite the market crash and negative news in the crypto ecosystem could indicate renewed interest in the digital currency.

Additionally, Musk has always been vocal about his support for Bitcoin and other cryptocurrencies – especially Dogecoin. The company may be waiting for the right time to make a move, but it's also possible that it is simply holding on to its Bitcoin stash as a long-term investment.

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