The worth of the electric vehicle company’s digital assets did not change. According to Tesla’s Q1 earnings, that maintained a constant Bitcoin balance in the first quarter of the year.
According to the company’s April 19 announcement, it held $184 million of the digital asset in Q1 2023, the same amount it did in Q4 2022.
Tesla’s Q1 earnings
Despite the fact that the price of Bitcoin has changed in recent months, Tesla’s accounting systems indicate that the company’s holdings have not increased or decreased in value overall.
It initially purchased $1.5 billion in Bitcoin in February 2021, and its holdings were valued $2.5 billion at one point.
However, in the second quarter of 2022, the corporation sold around three-quarters of that amount. Musk’s company owned $218 million in Bitcoin in Q2 and Q3 before losing some of its value owing to volatility and its own sales.
The company’s erratic connection with bitcoin is widely documented. Tesla briefly took Bitcoin as payment before discontinuing it due to the environmental impact of cryptocurrency mining. Dogecoin (DOGE) is now accepted as payment for some products. Tesla’s (TSLA) stock is down 2.02% today and 4.06% after hours.
The accounting standards it follows prevent unrealized gains on such holdings from being recognised, which is why the value remained unchanged despite a large increase in the spot price of bitcoin over the quarter.
Tesla announced adjusted earnings per share of $0.85 for the quarter, which was in line with what most analysts predicted. The company’s revenue came in at $23.33 billion, just shy of the $23.6 billion predicted by experts.
BTC holdings remained unchanged for the third quarter in a row
Tesla has held onto its digital assets for the third straight quarter, after selling $936 million in BTC during the second quarter of 2022 to obtain cash amid Covid lockdowns.
The compant never disclosed how many BTC it owns, instead reporting the total US dollar value of its digital assets. However, it is thought that the main majority of the $184 million, if not all of it, is kept in BTC.
According to Coinkite, the vehicle manufacturer has approximately 9,720 BTC on its balance sheet. Notably, CEO Elon Musk has previously stated that the business owns some dogecoin (DOGE), though the amount is unknown.
Tesla has never disclosed a DOGE acquisition, although the corporation does accept the meme coin as payment for some of its online items.
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