Happy Bitcoin anniversary, Tesla — Elon Musk firm still hodls 9.7K BTC
The latest data shows that Bitcoin (BTC) owned by Tesla is still worth 33% less than its 2021 purchase price.
Two years after Elon Musk’s firm added BTC to its balance sheet, much of the profit continues to elude the automaker.
Tesla and Bitcoin: $1.5B to $225M
Bitcoin and Tesla have proven to be an explosive combination ever since Musk announced he would buy $1.5 billion worth of BTC.
The February 2021 move came as BTC/USD was approaching its first all-time high of the year, which it hit in April, topping $58,000.
Tesla’s purchase price at the time was around $34,700. according to to data from the Bitcoin Treasuries tracking site.
After selling 10% of its assets in March of that year, Tesla became a heavyweight Hodler until a surprise move was announced in July 2022 when the company got rid of 75% of the remaining coins.
This was done at a loss as BTC/USD was trading around $23,000 at the time. The sale took place in the second quarter of 2022 for about $29,000 per coin.
Taking a hit seemed more appealing to Musk, who argued that the reason for the sale was not a direct comment on bitcoin as an investment.
Since then, Tesla has held onto 9,720 BTC, and the subsequent price action has continued to deprive the company of any investment benefit. As of February 2023, Tesla is still 33% short of its remaining funds, which are valued at $225 million, according to Bitcoin Treasuries.
TSLA and BTC are growing in tandem
Cryptooshala previously reported on the relationship between the spot price of bitcoin and Tesla shares, which saw a wide resurgence in early 2023.
Bitcoin surged 300% in the year before the latest halving – is 2023 different?
As of the anniversary of the Bitcoin purchase, TSLA is up 66% year-to-date, outpacing bitcoin’s gain of just under 40%, according to data from Cryptooshala Markets Pro and trade view confirms.
However, the recovery failed to catch the attention of the mainstream media, who decided this month to highlight Tesla’s 2022 BTC net loss of $140 million.
Meanwhile, Musk may have become better known in the context of other cryptocurrencies, notably Dogecoin (DOGE), which he has been touting extensively on social media and elsewhere since 2021.
He recently revealed that the payments will go to Twitter, which he bought last year, and that they may include cryptocurrency at some point.
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Credit : cointelegraph.com