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Tesla bought $1.5 billion in bitcoin early this year. By the end of March, it was worth $2.5 billion

April 28, 2021. Summarized by summa-bot.

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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.

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.

But he said the company intends to hold most of its bitcoin stake long-term.

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by summa-bot

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