Tesla Sold Part Of Bitcoins And Received $ 101 Million In Profit

Electric vehicle maker Tesla is capturing profits on its Bitcoin position, which it opened earlier this year.

Elon Musk’s company reported its financial results for the first quarter. In the “Income” section, the line “digital asset sales” was included, according to which the amount of bitcoin sales was $ 272 million, and the profit from them was $ 101 million. Tesla also mentions the sale of bitcoin on a separate slide, along with factors of “positive influence” in its main directions. activities. Together, they helped set a new record for one-quarter net income of $ 438 million.

The company disclosed a $ 1.5 billion position in Bitcoin in February. Based on the latest reports, its balance in Bitcoin after the sale is still at least $ 1.33 billion, but, most likely, it is significantly higher given the growth in the exchange rate. The reporting rules do not imply the disclosure of such information. In March, Tesla began accepting cryptocurrency as payment for orders on its website and promised not to liquidate the assets it received from customers.

TSLA shares were down 2.5% after the close of markets and a positive session on Monday. Bitcoin is trading at an increase of 2.7% per day for about $ 53,800. Tesla’s February announcement contributed to the continued growth of bitcoin, which circulated at $ 30,000 at the beginning of the year.

UPD: Tesla CFO Zack Kirkhorn announced in a Q1 conference call that the sale accounted for 10% of the company’s total Bitcoin position.

“Bitcoin has seemed and has proven itself to be a good storage solution to date that is not immediately required for day-to-day transactions and can generate good returns,” the company said. – There are many reasons for optimism. We are very pleased with the liquidity of the bitcoin market. When we sold at the end of March, we were able to execute the trade quickly. Being able to exit is extremely important. We truly believe in the long-term potential of Bitcoin. What we have now, we intend to keep for a long time and will continue to accumulate bitcoins that we receive from customers as payment for cars. “

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