Bitcoin helps Tesla post record profits
01:33 - Source: CNNBusiness
Tesla 16 videos
Bitcoin helps Tesla post record profits
01:33
Now playing
- Source: CNNBusiness
Did you see the viral flying Tesla? It wrecked this man's car
04:02
Now playing
- Source: CNN
Watch: Tesla in 'Autopilot' mode crashes into police car
01:39
Now playing
- Source: CNN Business
Tesla shows off its $1900 Cyberquad ATV for kids
01:00
Now playing
- Source: CNN Business
CNN tried Tesla's 'full self-driving' mode on NYC streets. It didn't go great
Elon Musk to Bernie Sanders: 'I keep forgetting that you're still alive'
03:36
Now playing
- Source: CNNBusiness
Tesla shares fall after Elon Musk's Twitter poll
01:38
Now playing
- Source: CNNBusiness
Elon Musk says Tesla is building a humanoid robot
01:12
Now playing
- Source: CNN Business
Elon Musk says Tesla price hikes are due to supply chain issues
02:56
Now playing
- Source: CNNBusiness
Watch Consumer Reports trick Tesla's Autopilot system
01:38
Now playing
- Source: CNN Business
SEC: Elon Musk officially named 'Technoking of Tesla'
03:06
Now playing
- Source: CNN
In 2010, Elon Musk had big plans for Tesla. Listen to his predictions
Elon Musk has a lot to say about Covid-19. Some of it isn't true
02:01
Now playing
- Source: CNN
Watch the Tesla Cybertruck's unbreakable windows break
01:36
Now playing
- Source: CNN
Elon Musk busts a move in Shanghai
01:09
Now playing
- Source: CNN Business
See Tesla's new Model Y
01:19
Now playing
- Source: CNN business
New York CNN Business —
Tesla’s $1.5 billion bitcoin bet from early this year had already increased in value by more than $1 billion by the end of last month.
The company disclosed in February that it used some of its available cash to invest $1.5 billion in bitcoin. Tesla on Monday reported a record quarterly profit, disclosing it had sold 10% of its bitcoin stake, netting a $101 million profit on those sales.
Tesla provided more details about its cryptocurrency holdings in a regulatory filing Wednesday, disclosing that it made a $128 million profit on some bitcoin sales, but recorded a $27 million loss on some of its other sales of the volatile digital asset.
It said the value of the company’s remaining bitcoin (XBT) holdings was $2.48 billion as of March 31. That’s probably fallen considerably, as the value of bitcoin (XBT) is down about 10% this month – trading at $54,700 Wednesday. Prices reached nearly $65,000 earlier this month, and Tesla may have sold additional holdings at a higher price. Or it may have purchased more bitcoin (XBT) at that higher price. Investors will have to wait until the company discloses more, likely in its next quarterly filing in three months.
Zachary Kirkhorn, Tesla’s chief financial officer, told investors Monday that the company’s bitcoin investment has “so far has proven to be a good decision.” Kirkhorn also holds the title of Tesla’s “master of coin,” a Game of Thrones inspired title he was given during the quarter when CEO Elon Musk also took the title of “technoking.”
The company made the bitcoin investment because it was looking for something to do with its excess cash that provided some level of return. Bitcoin also provides Tesla with the liquidity it needed while building new factories outside of Austin, Texas, and Berlin, Kirkhorn said.
“Being able to access our cash very quickly is super important to us right now,” he said. “And there aren’t many traditional opportunities to do this or at least that we found [to get a return] … particularly with yields being so low, and without taking on additional risk or sacrificing liquidity.
“From a corporate treasury perspective, we’ve been quite pleased with how much liquidity there is in the Bitcoin market,” he added. “When we did the sale later in March, we also were able to execute on that very quickly.”
But he said the company intends to hold most of its bitcoin stake long-term.
“We do believe long term in the value of Bitcoin,” he said. He said the company is watching the cryptocurrency space closely and “there are things that we’re constantly discussing.”
But Kirkhorn said the company is not ready to disclose its plans further.
Author: Jeffrey Evans
Last Updated: 1699513442
Views: 1686
Rating: 4.8 / 5 (30 voted)
Reviews: 91% of readers found this page helpful
Name: Jeffrey Evans
Birthday: 1918-06-10
Address: 546 Patrick Brook, Rasmussenport, AR 98778
Phone: +4817143892526507
Job: Article Writer
Hobby: Cocktail Mixing, Wildlife Photography, Table Tennis, Cooking, Camping, Card Collecting, Horseback Riding
Introduction: My name is Jeffrey Evans, I am a Precious, welcoming, talented, accessible, important, dazzling, audacious person who loves writing and wants to share my knowledge and understanding with you.