According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash.
Tesla Maintains Holdings After Initial Sell-Off
In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably, the sale marked an actual departure from the company’s usual practices when it came to its holdings of the premier cryptocurrency.
Until the Q2 sale, Tesla had made little changes to its store of king-crypto Bitcoin since early 2021. Back then, the electric car maker added $1.5 billion worth of BTC to its portfolio. This amounted to a total of 43,200 Bitcoins.
Elon Musk said at the time: We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some verdict on bitcoin,” Musk clarified.
Price Fluctuations Result in $33M Losses
As stated earlier, since the unexpected sale Tesla has maintained the remaining 15% of its Bitcoin. This comes in spite of unstable market conditions, amid a selloff caused by the FTX crash.
Tesla, of course, could not escape the losses. Around the end of September BTC was worth $20,000 per unit, by year’s end the token had settled around $16,500. As such, Tesla’s Q4 report revealed a $33M drop in value as its assets were worth $184M compared to Q3’s $218M.
Tesla’s Q3 report commented on the volatility of the crypto space, noting that it was pretty standard.
The prices of digital assets have been in the past and may continue to be highly volatile, including as a result of various associated risks and uncertainties,” the report stated.
Notably, Bitcoin’s price has been on the mend following the transition to 2023, trading well above $23k at writing.