After everything that’s happened over the past several months, it looks like Tesla and its CEO Elon Musk have retained some of their bitcoin holdings.
Tesla and Musk: Still Silent BTC Fans?
The past year has been rather hellish for bitcoin, and while the world’s number one digital currency has managed to endure a few price bumps here and there during the early weeks of 2023, it’s going to be a while before the pain and suffering experienced in 2022 comes to a full halt. Bitcoin lost more than 70 percent of its value, dropping from its $68,000 all-time high (which it achieved in November of 2021) down to the mid-$16K range. It was a sad and ugly sight to see.
In addition, many other leading virtual currencies followed in BTC’s footsteps, and the crypto space wound up losing more than $2 trillion in overall valuation, not to mention that the industry was terribly marred by bankruptcies, exchange fraud, and a wide array of other problems that ultimately caused many people to see the digital currency arena in a whole new light… A rather negative one.
Not long ago, Tesla announced it had parted with much of its bitcoin holdings. It had stated in early 2021 that it had purchased several billion in BTC, a decision that seemed right at the time given the currency was trading for over $50,000 during the early months of that year. However, nobody could have predicted that 2022 would be as bearish as it was, and Tesla – along with many other investors – wound up losing quite a bit.
But while the company and its CEO Musk ultimately chose to get rid of most of their BTC units, they did hang onto some. Say what you will about Musk, but he’s not dumb. He likely understood that there was a chance bitcoin could potentially move back up (as it’s doing now) and he wanted to ensure some of it remained in his private stash so he could benefit should the bulls return to the stage.
At the time Tesla got rid of most of its bitcoin, the company put out the following statement:
We have converted approximately 75 percent of our bitcoin purchases into fiat currency.
A Lot of BTC Has Been Lost
At the time, the company lost well over $100 million on its BTC bet, though the company still has about $218 million worth of BTC left at the time of this writing. In a regulatory filing, the company said:
The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties. For example, the prevalence of such assets is a relatively recent trend, and their long-term adoption by investors, consumers, and businesses is unpredictable.
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