Tesla - Pixabay

Tesla Sells 10% of Recent Bitcoin Purchase


Photo by Tima Miroshnichenko from Pexels

I am not sponsored by anyone or anything mentioned in this article. 
This is not financial advice.  I am not a financial advisor.
Please do your own research before making any decisions before investing. 
This article is meant for educational purposes only.

Yesterday, April 26, 2021, Tesla released their Q1 earnings report.  Back in February, Tesla purchased $1.5 billion in Bitcoin, turning around to sell around >10% of their Bitcoin stake.  Why, you may ask?  Well, check this out... they made $101 million in profit off of it!

This is sparking outrage throughout the crypto community... mainly accusing Elon Musk of a pump-and-dump.  The hype generated around Elon Musk when he even mentions a crypto is massive.  When the richest man in the world speaks, especially about anything to do with money, who doesn't listen?

 

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Elon Musk stated, "I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.".  Source for this response is found here.  It's always fun to read the comments! 

Not only has Bitcoin hit an all time high, so did Tesla this past quarter.  Tesla reported earnings of $438 million in Q1 of 2021, nearly 25% of that coming from selling their stake in Bitcoin alone.  Tesla's Bitcoin investment definitely has already paid off.  Losing 10% of their stake in Bitcoin shouldn't phase the company, however, as the new option to purchase Tesla vehicles with Bitcoin will generate more coins in their pocket.  Tesla still holds their rank at #2 with publicly traded companies who have purchased Bitcoin.

BTC Trading Chart - 04/27/2021 at 7:00pm EDT

With all eyes on Elon Musk, it's safe to say that peoples' curiosity will further increase in Bitcoin.  Holding on to a crypto that has the potential to drastically increase in value is much better than holding a $100 bill in your pocket for years... only to have it decrease in value over time.  With this earnings report, I think people will finally begin to do the math and take note moving forward! 

I'm excited to see Tesla does in Q2 and even more excited to see all the Bitcoin traded from Tesla sales!


Do you think Elon Musk is the king of pump-and-dump strategy with his influence?
Let us know in the comments down below!

 

Thanks so much for reading! 
Please feel free to follow my page for daily blog posts about crypto news, updates, and research! 
Have a wonderful day! 

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