What led to Tesla selling 75% of its Bitcoin holdings? The Motley Fool - Back in February 2021, Elon Musk made headlines when he announced on Twitter (TWTR 1.30%) that his electric car company, Tesla (TSLA 6.17%), would buy Tesla earlier this month announced the purchase of $1.5 billion of bitcoin in an effort to "further diversify and maximize" the return on its cash. Tesla said Monday that it bought $1.5 billion in bitcoin, a disclosure that follows Chief Executive Elon Musk 's promotion of the cryptocurrency and other . It's driven purely by emotions and technical analysis. Tesla in February 2021 reported it had purchased $1.5 billion worth of Bitcoin to diversify its balance sheet away from cash and maximize returns. The U.S. Securities and Exchange Commission (SEC) could investigate Elon Musk over Tesla's $1.5 billion bitcoin purchase, some legal experts have warned, including a former SEC enforcement officer. The serial entrepreneur - whose net worth tops $20 billion - made the revelation in response to a question about . The real reasons behind the sale. Although Tesla made the announcement of the sale just last week, the company actually sold roughly 31,500 Bitcoin at a price of roughly $30,000 some time back in . There's nothing to worry about. Here's what Elon Musk had to say. Musk commented on the reason for Tesla to sell its . In an SEC filing, Tesla has disclosed that it has purchased $1.5 billion (USD) in bitcoin.. Zachary Kirkhorn, Chief Financial Officer, Tesla, said that company invested $1.5 billion in bitcoin during the quarter, then trimmed its position by 10%, which contributed to a small gain in its . The automaker is suddenly concerned by the . Here's a simplified version of why, as explained by The Verge: "Without a bank's security systems, bitcoin records are kept safe and . Tesla may have just dumped 75% of its Bitcoin and . The company plans to let consumers . On updating its investment policy, the company in the SEC filing mentioned that it plans to be more flexible. It would seem, then, that Tesla's investment in Bitcoin would be at odds with the company's environmental stance. Bitcoin fell by more than 10% after the tweet, while Tesla shares also dipped . The crypto network is annoying for greater information as they anticipate Tesla's 10-Q filing. Tesla CEO Elon Musk said Wednesday on Twitter that Tesla has "suspended vehicle purchases using bitcoin," out of concern over "rapidly increasing use of fossil fuels for bitcoin mining." The price. "As of the end of Q2, we have converted approximately 75% of our . When Tesla reported first-quarter earnings last month , executives revealed that Tesla had sold about 10% of its bitcoin holdings for a profit of more than . Musk suddenly pulls the plug on Bitcoin purchases of Tesla vehicles. " 'Big Short' investor Michael Burry calls Tesla's $1.5 billion bet on Bitcoin a distraction and says Dogecoin's record price signals a massive bubble " from Business Insider " Low U.S. Rates. What this means for us as investors. A German prankster claims that he was behind a mysterious Reddit post last month that appeared to anticipate Tesla's blockbuster bitcoin buy this week -- and that he was on LSD when he did it, The . The price of ethereum fell about 12 . CEO Elon Musk said that Tesla is open to expanding its Bitcoin holdings, after the carmaker disclosed it sold 75% of its holdings this quarter. Elon Musk explained on Twitter that Tesla sold 10 per cent of its Bitcoin holding in order to demonstrate Bitcoin's liquidity. The company reported a massive $101 million gain on their Bitcoin investment alone. Other digital currencies dropped as well. Like us on Facebook to see similar stories Please give an overall site rating . However, Musk himself is a well-known fan of the cryptocurrency and endorsed Bitcoin in its early days. According to Digiconomost, Bitcoin consumes as much electricity annually as The Netherlands and has a carbon footprint comparable to Singapore.It isn't an accident though, cryptocurrencies are meant to be energy-hungry by design. Feb 8, 2021 3:01 PM EST. His political views also may have played a part. It's a no-brainer that Elon Musk fans went into herd mentality and started buying Bitcoin. (1 minute) Tesla Chief Executive Elon Musk said the company has suspended accepting bitcoin as payment for its vehicles. Musk tweeted in March: "You can now buy a Tesla with Bitcoin. After all, Bitcoin is . After Elon Musk-owned Tesla sold 10 percent of its Bitcoin holdings on Tuesday, 27 April, many Bitcoin believers alleged that Elon Musk has pumped the cryptocurrency and then sold . Where I Buy Bitcoin: https://gemini.sjv.io/1E3dz Get up to $250 FREE in Bitcoin: http. In July of this year Tesla announced that they had sold off 75% of its Bitcoin in the midst of a declining market. (File/AP Photo) Electric car maker Tesla announced Monday that it invested $1.5 billion in bitcoin, making it the biggest investment by a mainstream corporation into the most . Tesla's shares also went down by almost one percent after the after-trading-hours tweet. Yesterday, he abruptly reversed course . See also: Why did Tesla buy bitcoin? TeslaCoin is a popular cryptocurrency platform launched in 2010 and provides wallet management services. At writing, a single Bitcoin trades for US$23,167.70, but the crypto declined to as low as US$22,650, down from its five-week high of US$24,196. Neither of these is a . July 21, 2022 11:22 AM ER Velasco 0 Comments bitcoin, Tesla. 2 min read. The price of bitcoin tumbled nearly $9,000 to just over $46,000 on Wednesday night, shortly after Musk's announcement. The automaker last month revealed that it . As per an article by Bloomberg, Tesla reported a $272 million gain on 'digital assets'. At the time, many viewed the purchase as one of the most significant events in Bitcoin's short history. You can use purchase price of that BTC to offset the gains (1k USD in this case), but you have to be . 9. Tesla went on to say that it "will not be selling any Bitcoin" (how much it may have already sold of the coins it purchased earlier this year for $1.5 billion is unclear) and said that it will use those holdings for transactions whenever mining "transitions to more sustainable energy."It's also unclear why Tesla hadn't taken these factors into account before announcing its use of Bitcoin, as . As the man himself said, it was inevitable. Elon Musk's Tesla buys $1.5bn of Bitcoin causing currency to spike 8 February 2021 Comments Getty Images Elon Musk's car firm Tesla has said it bought about $1.5bn (1.1bn) of the cryptocurrency. In any case, Tesla still holds approximately 38,406 BTC, and those are worth approximately $1.26B. On February 8, electric car maker Elon Musk revealed Tesla's (NASDAQ:TSLA) US$1.5 billion investment in Bitcoin. It aims to further integrate and maximize returns on its idle cash. Here's what Bitcoin's proponents and sceptics say about Tesla's Bitcoin move: 1) If any lesser mortals had made the decision to put part of their balance sheet in Bitcoin, I don't think it would . After Musk's tweet on Wednesday, Bitcoin stock fell by almost $2,000, falling from $54,700 to roughly $52,600. The most buzzworthy move came from Tesla (ticker: TSLA), which disclosed on Monday that it has bought $1.5 billion worth of Bitcoin to hold on its balance sheet. It was a short-term bet that paid off handsomely for Tesla: buy $1.5 billion worth of bitcoin at the close of 2020 when it sold for under $20,000; sell off 10 percent of it during the first . Tesla makes a $1.5B bet in Bitcoin, and you can even buy a Tesla with the cryptocurrency soon. On Feb. 8, Musk's Tesla disclosed that it had bought $1.5 billion worth of Bitcoin using cash on its balance sheet and said it would begin accepting digital coins as payment for its products. Elon Musk and Tesla buy Bitcoin. It is said that Elon's move to stop Tesla's car purchases with Bitcoin wiped off $365 billion from the cryptocurrency market. Tesla stated that the company had traded their Bitcoin for traditional currency, given the declining value of the cryptocurrency. There are only two true drivers to Bitcoin's value: investor emotions and technical analysis (i.e., pretty charts). Considering the history of Musk's tweets about Bitcoin, it becomes clear that the motivation behind Tesla's adoption of the cryptocurrency stems from the CEO's support for Bitcoin. Musk's moves were the mentos to the cryptocurrency's Coca-Cola. Tesla also announced it would accept payment for its products in bitcoin on a limited basis, becoming the first major automaker in the world to do so. i. The company said that it had "updated our investment policy to provide us with more. Tesla is accepting Bitcoin as a form of payment for their products, which increases mainstream adoption and diminishes the coin's risk. They desired to make sure that they'd sufficient coins amid "uncertainty over ongoing China lockdowns". Elon Musk shocked the world a few months ago by first announcing that Tesla had bought bitcoin worth $1.5 billion and then that Tesla buyers could pay for their new cars with bitcoin if that so . Bitcoin's price rose and Tesla ( TSLA) - Get Tesla Inc. Report shares advanced Monday after the electric-vehicle company said in a Securities and Exchange . But its troubling carbon footprint is an issue. Shortly after the sale, Musk stated that Tesla simply bought its Bitcoin to shore up liquidity. The latest headlines may be the most exciting ones yet for CEO Elon Musk's . According to an SEC filing Monday, Tesla purchased $1.5 billion worth of bitcoin using its cash reserves. Elon Musk fuels Dogecoin rally. Featured Image by Blomst from Pixabay - Charts by TradingView. Tesla CEO Elon Musk announced late Tuesday that it is now possible to buy Tesla vehicles in the U.S. with bitcoin. Tesla stated that it doesn't need the $1.5 billion to buy supplies or pay routine bills, and after purchasing the Bitcoin, has plenty of "liquidity" left over for running its businesses. But, why has Tesla invested in Bitcoin? In a regulatory filing Monday. Indeed, Tesla's announcement did more for bitcoin on Monday than it did for the company's shares, which rose as much as 3 percent on the news and were recently up about 1.4 percent at $864.01. Tesla may or may not liquidate Bitcoins upon receipt, which. There are few speculative assets more harmful to the climate than Bitcoin . This caused a Doge frenzy, taking the memecoin to almost $1 per DOGE. Tesla ended 2020 with $19.38 billion in cash and. Why has Tesla . Tesla says it has invested more than $1 billion in Bitcoin and will accept the digital currency as payment for its electric vehicles. Still, the company has positioned itself as a clean energy manufacturer. Why did Tesla Sell Bitcoin? Faster than its accumulation of the digital asset, Tesla (Nasdaq: TSLA) just liquidated around three-quarters of its bitcoin holdings, a perceived departure from the company's staunch embrace of the crypto coin. Updated May 12, 2021 7:55 pm ET. Today in an SEC filing, Tesla disclosed that it has acquired $1.5 billion in bitcoin, the popular cryptocurrency.Moreover, the company noted that it may also accept bitcoin in the future as a form . Musk isn't entirely wrong. Dan Weil. Photo: Yuriko Nakao/Aflo/Zuma Press. News of the $1.5 billion Bitcoin purchase came right after China revealed its concerns with Tesla. Tesla's $1.5 billion investment sends bitcoin to record highs Bitpay, for example, is a company that manages bitcoin transactions for people and businesses who want to buy and sell products and. "We are concerned . CNBC blamed Musk for inflating Bitcoin by posting positive messages about it on his Twitter account. "Bitcoin paid to Tesla will be retained as Bitcoin." May 2021. The company also said it would start accepting bitcoin as a payment method for its products. See also: Why did Tesla buy bitcoin? The Coin is believed to be backed by Tesla and developed in partnership with the United States government to trade the Globe national cryptocurrency. When Tesla reported first-quarter earnings last month , executives revealed that Tesla had sold about 10% of its bitcoin holdings for a profit of more than . After ending 2020 at around US$0.00473, the Doge meme . Then in May, Tesla chief Elon Musk decided Tesla. But why would Tesla do this? On Friday 29th January, Tesla CEO Elon Musk changed his Twitter bio to just "#bitcoin."This is interesting, but not toally surprising, Musk expressed his interest in Bitcoin and cryptocurrencies in the past but Elon Musk . However, when Tesla reported Q1 2021 earnings in April, the firm revealed that it had sold about 10% of its bitcoin long position for a profit of more than $100 million. Electric car maker Tesla announced on Monday that it has purchased $1.5 billion in the . very easy, if USD value of Tesla at the time of purchase is 30k you owe taxes on profit of 29k. Musk still claims that his company has diamond hands and will not sell. Tesla disclosed the bitcoin holding in a filing with the US Securities and Exchange Commission on Monday. Listen to article. The company began accepting Bitcoin as a form of payment in late March Credit: Getty. The Bitcoin buy is also a clear indictment of Tesla's, and Musk's, image as an environmentally conscious innovator. The $1.5 billion purchase of Bitcoin caused a frenzy of buyers to pile in and drive the price. Tesla only began accepting Bitcoin 49 days ago in late March. Using today's bitcoin price of about $10,000 a coin, that translates to $2,500. Tesla announced in an SEC filing Monday that it has bought $1.5 billion worth of bitcoin. Got it! Bitcoin has caught the attention of Wall Street and Silicon Valley in recent months, with MicroStrategy MSTR +3.2% and Square SQ -2.2% among companies that have joined high-profile . Wed 21 Jul 2021 19.34 EDT. In January, bitcoin was worth around $30,000 and $40,000, and was worth $57,000 by March - meaning Tesla had made between $630 million and $1.35bn from its investment. Tesla has suspended vehicle purchases using Bitcoin due to climate change concerns, its CEO Elon Musk said in a tweet. In the last few days, Dogecoin a seven-year-old cryptocurrency sped ahead of Bitcoin in popularity. CEO Elon Musk. ELON MUSK'S electric car company Tesla has bought more than 1billion ($1.5billion) worth of bitcoin (BTC), causing the flagship cryptocurrency to spike to a record-high price. The gain on Monday morning's rally would add up to about . A t first glance, the revelation that Tesla ( TSLA) has invested $1.5 billion of its cash reserves into Bitcoin may seem like a warning sign for stock market investors. Bitcoin's price is above $30K and Tesla is barely in the red. AssumingTesla bought its Bitcoin at the average price for January - or $34,672 according to Bloomberg - it would own roughly 43,000 units. Elon Musk has been a big cryptocurrency booster of late, even directing Tesla to buy $1.5 billion in Bitcoin for its corporate treasury earlier this year. By 8:45 p.m., the market capitalization had dropped from $2.43 trillion to around $2.06 trillion after Tesla's announcement that it would no longer accept Bitcoin as a payment method. Tesla will most likely restart accepting bitcoin as payment once it conducts due diligence on the amount of renewable energy used to mine the currency, the founder and . Tesla (NASDAQ: TSLA) stock has cooled off in recent weeks despite the company getting as much free publicity as ever. Moreover, the increasing number of Bitcoin holders also might have contributed to Tesla's bold move.

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