Elon Musk’s Tesla held onto its Bitcoin in Q4 despite market turbulence


Electric vehicle maker Tesla refused to sell any more Bitcoin (BTC) in the second half of 2022, despite selling 75% of its holdings in the second quarter.

In its latest Q4 earnings report, dated Jan. 25, Tesla’s financials show it hasn’t bought or sold Bitcoin for the second quarter in a row. This is despite severe market turmoil in November and December over the collapse of FTX.

The documents show that the company owns $184 million in digital assets as of December 31, 2022, down from the previous quarter’s $218 million in assets due to $34 million in impairments, as Bitcoin’s price fluctuates between at the end of September and December last year. .

Bitcoin was around $19,500 on September 30, 2022, before falling nearly 15% to $16,600 on December 31.

The EV maker also held onto its Bitcoin through the third quarter last year after selling 75% of its Bitcoin in the second quarter. The second-quarter sale added $936 million in cash to Tesla’s books and the company benefited $64 million.

Elon Musk, CEO of Tesla, explained at the time that the sale was to “prove Bitcoin’s liquidity as an alternative to holding cash on a balance sheet.”

However, Bitcoin ownership or Bitcoin acquisition was not discussed in Tesla’s most recent earnings call on Jan. 25. Based on estimates, Tesla has about 9,720 BTC.

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Overall, Tesla posted $5.7 billion in profit from $24.3 billion in revenue for the fourth quarter, with gross margins hitting the lowest level in five quarters. The company posted a total profit of $20.8 million for 2022 from $81.4 billion in revenue.

The revenue figure missed analyst estimates, but earnings outperformed consensus estimates.

Tesla’s share price had risen slightly that day and closed with a gain of almost 0.40%. It continued to trade positive after hours, up nearly 4.6% at the time of writing according to data from Google Finance.