Electric vehicle giant Tesla lost a total of $204 million in investments in Bitcoin, according to information it provided to financial investment regulators in the US; however, he regained $64 million through cryptocurrency trading.
Tesla Made A Name With Their Investment In Bitcoin
Tesla invested $1.5 billion in Bitcoin at the beginning of 2021. Owner Elon Musk also announced that Bitcoin can be used as a means of payment in sales. A few weeks later, the company changed its mind, and Tesla has since sold most of its Bitcoin holdings.
Musk comes among the highest-profile individuals earning from cryptocurrency. So, The statements he made about cryptocurrencies on social media greatly impact commercial transactions. When Tesla bought a large share of Bitcoin in February 2021, this cryptocurrency suddenly gained 25 percent, reaching a record value of $ 48,000. In March 2021, Bitcoin’s value rose again when Musk announced that Tesla would accept payments from customers in Bitcoin. But when the company backed out from that plan two months later, citing “climate change concerns,” the coin’s value dropped more than 10 percent.
Tesla’s Still Holds a Considerable Amount of Bitcoins
As bitcoin‘s value dropped dramatically in 2022, Tesla offloaded the majority of their holdings and utilized those funds to buy more traditional currency. They presently own around $184 million worth of bitcoin, likely holding out for a potential market recovery.
Despite losing more than half its value over the past year, bitcoin‘s market resilience has been astonishing – currently trading at $23,045.50 compared to its all-time high of $68,789.63. Industry experts anticipate that buyers’ desire for trusted household names and established ecosystems like Ethereum and Bitcoin will work in favor of a potential comeback. However, Tesla Inc., who disbanded its public relations department earlier this year, could not be reached for comment on the matter.