Tesla Inc. (TSLA) has not explicitly addressed its Bitcoin holdings in its latest quarterly earnings report, but analysts assert that the electric car manufacturer’s Bitcoin assets have remained stable in the final quarter of 2023. According to Bitcoin Treasuries, an aggregator tracking prominent BTC wallets in the business world, Tesla’s cryptocurrency assets are valued at approximately $387 million, holding over 9,720 BTC at current market prices.
Tesla’s venture into Bitcoin commenced in February 2021 with a significant investment of $1.5 billion, acquiring approximately 43,000 BTC following interactions between Elon Musk and Michael Saylor, CEO of MicroStrategy. While Tesla briefly accepted Bitcoin as payment, concerns about environmental impact prompted a strategy shift, leading to the sale of 75% of its holdings in Q2 2022 to strengthen its cash position amidst uncertainties related to the COVID-19 pandemic.
The dynamics of Tesla’s involvement with Bitcoin have influenced notable market movements. Elon Musk’s pro-Bitcoin tweets led BTC to reach an all-time high, while his subsequent anti-Bitcoin stance caused the cryptocurrency to lose over 75% of its value.
In contrast, MicroStrategy, co-founded and previously led by Michael Saylor, has continued to bolster its Bitcoin portfolio, making it the publicly traded company with the largest BTC treasury. MicroStrategy reportedly holds 89,150 BTC valued at $8.1 billion, with no Bitcoin sold since the initial purchase. Marathon Holdings surpasses Tesla in the ranking, securing the second position.
Despite Tesla’s cryptocurrency strategy, its latest earnings report, released on Wednesday, resulted in a 14% drop in shares due to weak auto revenue and forecasts of slower growth in 2024. While the report indicated a marginal increase in total revenue, up 3% from the previous year, it highlighted a noticeable dip in the operating margin to 8.2%, underscoring the challenges faced by the automaker.
However, Tesla’s net income more than doubled in the quarter, driven primarily by a significant noncash tax benefit. Looking ahead, the company’s focus on launching its “next-generation vehicle” in Texas may impact its vehicle volume growth in 2024.
During the earnings call, Elon Musk addressed questions about his desire to own 25% of Tesla, expressing interest in a potential shift towards a dual-class share structure. Musk’s comments highlighted ongoing tensions between corporate leadership and shareholder advisory boards.
Tesla’s strategic shift into AI and robotics, with the launch of x.AI and the development of the humanoid robot Optimus, represents a significant pivot for the company. Musk sees Optimus as having “the potential to far exceed the value of everything else combined” for Tesla. The introduction of the Cybertruck to the market also marks a pivotal moment, with an estimated capacity to build over 125,000 vehicles annually.
Tesla sold 75% of its BTC holdings in Q2 2022 for $936 million. If the selling occurred after April 28, the company would now have more funds than it received from the sales two years ago.
