Tesla, a manufacturer of electric vehicles, decided to stop selling Bitcoin (BTC), despite having sold 75% of its Bitcoin (BTC), holdings in the second quarter 2022.
Tesla’s financials show that it did not purchase or sell Bitcoins in the second quarter, even though the company reported its Q4 results on February 25.
This was true despite the market turmoil that occurred in December and November as a result of FTX’s failure. According to documents, $184 million in digital assets were held by the company as of December 31. This is a decrease of $218million from its holdings at December 31. This is due to $34million impairment charges incurred in the last quarter as a result the Bitcoin price falling between September and Dec of last year.
Bitcoin’s cost was more than $19,500 as of September 30, but had fallen to $16,600 as of December 31st.
After having sold 75% its Bitcoin holdings over the previous year’s first quarter, the electric vehicle (EV-maker) manufacturer retained ownership of cryptocurrency until the third quarter.
The company also made a profit, with $64 million of the $936 million it raised in cash from the sale.
Elon Musk, Tesla’s CEO, explained the reasons for the transaction. He stated that he wanted to show liquidity of Bitcoin instead of cash on a balance sheets.
Tesla, on the other hand, did not discuss its Bitcoin holdings nor offer its perspective on Bitcoin in its most recent earnings call on January 25.
Tesla is believed to have 9,720 Bitcoin in its possession.
Gross margins of the company for the quarter were at their lowest in five consecutive quarters. This resulted in a profit of $5.7 Billion on sales of $24.3 Billion.
The company still managed to make a profit in the second quarter of the year despite having sales totalling $81.4 billion.
The analysts’ forecasts were lower than actual sales, but the consensus projections for profit were better.
Tesla shares closed the day with a gain around 0.40%. This is a slight increase over the course the day.
Google Finance reports that it traded in a favorable direction even after hours and rose by 4.6% at the time of writing.