Tesla Held $2 Billion Worth of Bitcoin at End of 2021: Report

by Samantha Whidden
tesla-announced-it-held-2-billion-bitcoin-end-2021

Elon Musk’s electric car brand Tesla reportedly announced it held approximately $2 billion worth of Bitcoin at the end of 2021.

According to CNBC, Tesla declared on Monday (February 7th) in a filing with the SEC it held nearly $2 billion in the cryptocurrency at the end of last year. The car brand also purchased a total of $1.5 billion in Bitcoin in 2021. The media outlet revealed that the cryptocurrency was up by nearly 60% and traded above $46,000 on December 31st. However, it did slip as low as $30,000 in July. But this was due to concurs over the regulatory crackdown in China. It eventually hit an all-time high above $68,000 by the beginning of November 2021. 

Tesla notably records $101 million worth of impairment losses in 2021 from its Bitcoin investment. The car brand also disclosed that it realized gains of $128 million upon selling a portion of its holdings in March 2021. But overall, it gained $27 million in its cryptocurrency transactions during the year. This was notably recorded as a negative loss in both restructuring and other expenses.

Tesla Briefly Accepted Bitcoin as a Form of Payment But Stopped Due to Environmental Concerns 

In May 2021, CNBC announced that Tesla would stop accepting Bitcoin as a form of payment for car purchases. The company cited environmental concerns due to the fossil fuels for Bitcoin mining. Elon Musk announced the news on his Twitter. “Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”

The Tesla founder states that cryptocurrency is a “good idea’ on many levels and his company believes it has a promising future. But he believes that this cannot come at a great cost to the environment. “Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are looking at other cryptocurrency that use [less than] 1% of Bitcoin’s energy/ transaction.” 

CNBC also reports that following Musk’s social media declaration, the price of Bitcoin dropped around 5%. Meanwhile, entrepreneur and Dallas Maverick’s owner, Mark Cuban, spoke out about Tesla’s decision by declaring that the basketball team will continue to accept Bitcoin and other cryptocurrencies. “We are Mavs.com will continue to accept BTC/Eth/Doge. Because we know that replacing Gold as a store of value will help the environment. And [shrink] big bank and coin usage will benefit society and the environment.”

The media outlet then revealed that the Tesla founder has been a “very public fan” of Bitcoin and Dogecoin. He notably has tweeted and joked about the cryptos with his Twitter followers for nearly two years. 

Outsider.com