Tesla Motors appears on the list of magnificent public holders of bitcoin. The co-founder of Tesla Motors, Elon Musk, is a cryptocurrency enthusiast, and he spotted digital currencies like bitcoin and Dogecoin. Dogecoin is also being used as an exchange medium on the official website of Tesla to buy its merchandise.
In short, a tesla lover can buy the merchandise of this company using Dogecoin. Elon Musk did not appoint only Dogecoin as one of the transaction methods on operations related to tesla motors, but it appointed bitcoin as an exchange medium as well. Visit this Trading App to attain a detailed guide to bitcoin trading. The company’s balance sheet in bitcoin soared heavily in November 2021, but the total holding of this company in bitcoin is not even worth $2 billion. Below listed is everything you should know about the total holding of Tesla motors in bitcoin.
When did Elon Musk Invest in Bitcoin?
Elon Musk came to know about the transaction potential of bitcoin with the help of Michael Saylor, the owner of Micro strategy, a software company. Michael Saylor also requested Elon to make some investment in bitcoin for the betterment of this community. In February 2021, Elon Musk announced their investment in this legendary coin. Elon Musk, after investing in bitcoin, also stated that if the company acquires handsome capital gains, the company will be investing more funds in this coin.
How Much Elon Musk Invested in Bitcoin?
In February 2021, tesla motors made its first and last bitcoin purchase. The company bought bitcoin worth $1.5 billion. According to the spot price and recent purchase of this company, the worth of one BTC at this time is $42,000.
Regardless of investing a massive amount, the company never publicized this legendary coin as an investment asset. The surging and slumping of bitcoin do not exert any possible impact on the overall revenue of this company. The earnings of this company can only be affected if the authorities decide to sell off bitcoin units.
Did Tesla Accept Bitcoin as a payment method?
As discussed above, Tesla appointed both Dogecoin and bitcoin as an exchange method, but they did not continue payment operations with bitcoin. Elon Musk has had his own reasons for not accepting bitcoin as an exchange anymore, and he discussed these reasons on his Twitter handle. After this announcement, there was a bloodbath in the digital currency market as it was the first time in 2021, cryptocurrency market crashed, and Elon was accused of it.
Elon Musk cited the environmental impacts caused by this digital coin. But when Elon Musk noticed many magnificent mining plants are also structured on conventional sources of energy, he told the security exchange commission that he might reverse his decision of suspending bitcoin as an exchange medium. Evidently, the environmental impacts caused by digital currency transactions are overhyped, but these impacts are intensifying with a rapid speed over time.
Tesla’s holding by the end of 2021
Tesla appears in the list of gigantic public investors of bitcoin as the majority of the bitcoin whale are private and never publically admitted about their investment in bitcoin. Tesla’s investment of $1.5 billion in BTC will become $2 billion by the end of 2021. Unquestionably, they have made pretty handsome returns, but as per experts, if they had invested a similar amount in another altcoin like BNB, even in ether, they would have made more money.
How Much did Tesla lose?
According to the numbers, it seems like Tesla has made pretty handsome gains in just one year. However, Tesla has experienced heavy cumulative losses, which they mentioned to the security exchange commission of the United States. Tesla motors confronted a cumulative loss of amount $101 million due to the storming price slump experienced by bitcoin by the end of 2021. The underlying market value of BTC remained merely $1.26 billion by the end of 2021.
The entire holding of tesla motors comprises nearly 40,000 BTC, and this is not even half of the micro strategy, the first biggest public holder of this cryptocurrency. Regardless of hinting that Tesla motors might adopt bitcoin again, the company has not announced bitcoin’s adoption in tesla motors as an exchange medium. The above-listed portion describes everything you should know about tesla motors and their holding in bitcoin.