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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Did Tesla Really Sold Its Bitcoin? Earnings Report Sheers Some Light

Reynaldo Marquez
Reynaldo Marquez
4 years ago
2 mins read
Bitcoin BTC BTCUSD Tesla

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Tesla adding Bitcoin to its corporate treasury back in February was considered an inflection point for the cryptocurrency. A major corporation adopting BTC into its balance sheet seemed like a sign that the BTC has gone mainstream.

CEO and “Technoking of Tesla” Elon Musk was apparently convinced by MicroStrategy’s CEO Michael Saylor to follow a similar treasury strategy and incorporate BTC into their balance sheet. However, Tesla’s recent Q1 earnings report shows that the car manufacturer has followed a strategy of its own.

The company announced a $1.5 billion BTC purchase. Their earnings report shows that Tesla sold a portion. At least 9% of its BTC, according to the document, Tesla made a $272 million profit. The company still holds around $2.6 billion in the cryptocurrency. The company revealed the following:

Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in Restructuring & Other line), were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items.

Bitcoin’s Performance Takes A Hit After Tesla’s Disclosure

After showing signs of recovery during the past day. Bitcoin seems to be reacting negatively to Tesla’s report. When the company announced its BTC purchase, the cryptocurrency went from the high range at $38,000 to $53,000.

As trader Luke Martin reported, on February 8th, when Tesla’s purchase was made public, Bitcoin has its “largest candle in history”. The cryptocurrency went from a low at $38,058 to a high at $46,929 with an $8,871 increase in less than 24-hours. Martin said the following in the report:

Bitcoin price is still higher than where Elon got in. It doesn’t really matter if he sells 10% of his stack. There will be corporate whales like Saylor that hold forever and whales like Elon that sell on a double. It’s still bullish that this new type of buyer is here at all.

Other members of the crypto community believe Tesla is “trading” Bitcoin and could create selling pressure on the market. Lawyer Collins Belton said Tesla must still follow a corporate treasury management plan.

According to the expert, the company could have commitments and must still stick to an investment policy. Therefore, Tesla’s finance department must still achieve “certain targets” which take BTC’s volatility into account. Belton added:

They could be losing hope, but I’m pretty skeptical that they’d have gone through that much legal diligence to immediately flip a few months later.

BTC is trading at $53.396 with a 12.5% profit in the daily chart. In the weekly and monthly chart, BTC shows a 3% and 5% loss, respectively. The market cap stands at $998 billion.

Bitcoin BTC BTCUSD
BTC with moderate gains in the daily chart. Source: BTCUSD Tradingview
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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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