The electric vehicle giant Tesla did not buy or sell any BTC during the first quarter of 2023.
The company’s last transaction was in Q2, 2022, when it sold 75% of its BTC holdings to cope with rising production costs.
No Changes in Q1
The EV manufacturer, led by Elon Musk, announced it had kept its Bitcoin possessions untouched during the first three months of the year. The company continues to hold 11,950 BTC, equivalent to approximately $345 million.
This is the third consecutive quarter where Tesla has not sold or bought any BTC. Its latest major transaction in the crypto scene occurred in Q2, 2022, when it parted with $936 million worth of the leading digital asset (75% of its total stash).
Musk explained that the move was vital due to Tesla’s record production costs in China which spiked to unseen levels due to another COVID-19 lockdown that hampered the local economy. He said the nearly $1 billion generated from the sale helped the company meet its unpredicted expenses.
ADVERTISEMENT
Contrary to his firm’s choice, Musk assured he had not sold his crypto holdings. Apart from Bitcoin, he has invested in Ethereum (ETH) and Dogecoin (DOGE). The memecoin is actually his favorite digital asset, arguing it is better suited for transactions and settlements than BTC.
Tesla and Bitcoin
The tech behemoth has been deeply involved with the industry since the beginning of 2021, when it bought a whopping $1.5 billion worth of BTC. The purchase added momentum to an already heated bull market, pushing the asset’s valuation to a new all-time high above $42,000.
Tesla doubled down a few months later, allowing customers to buy company vehicles in BTC instead of fiat currency, triggering another price increase.
The honeymoon between the two ended in May 2021 when Tesla suspended the payment method, citing the high energy consumption of the network. BTC tumbled from $55K to $52K in a matter of minutes after the disclosure.
Musk, on the other hand, said his company could bring back the option once there’s evidence that at least 50% of Bitcoin mining is powered by renewable energy. A recent research estimated the process has already moved in that direction, with over 52% of the energy coming from renewable sources.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
