Tesla, despite experiencing a 15% decline in revenue during the first quarter, has chosen to hold onto its Bitcoin holdings. The company currently possesses 9,720 BTC, which is valued at approximately $645 million. Similarly, Elon Musk’s other venture, SpaceX, has also placed its trust in Bitcoin and holds 8,290 BTC, worth approximately $550 million.
Tesla recently released its financial results for the first quarter, disclosing a significant 9% decrease in revenue, marking its largest decline in 12 years. However, despite this setback, Elon Musk has decided to maintain his faith in Bitcoin, and the company did not sell any of its BTC during Q1.
As the largest electric vehicle manufacturer globally, Tesla generated $21.30 billion in revenue during the first three months of the year. This figure fell short of analysts’ expectations of $22.15 billion. Additionally, it represents a substantial decrease from the $25.17 billion recorded in the fourth quarter of the previous year and the $23.33 billion reported in Q1 of the previous year.
The decline in revenue reflects a challenging period for Tesla, as it faces tough competition from established automakers in the electric vehicle market and encounters difficulties in maintaining a foothold in the Asian market. The company’s struggles have also resulted in a recent layoff of 14,000 employees, accounting for 10% of its global workforce. Furthermore, Bloomberg reports that this number could potentially double in the near future.
Over the past four months, Tesla’s stock has experienced a decline of over 34%. Its value has dropped from $248 to its current price of $162.40.
Despite these challenges, Tesla has remained steadfast in its Bitcoin holdings. The company’s stash of 9,720 BTC remained unchanged throughout the third and fourth quarters of the previous year. Tesla’s latest earnings report confirms that it continues to hold this Bitcoin reserve, which is currently valued at $647 million.
In early 2021, Tesla made headlines when it acquired $1.5 billion worth of Bitcoin, a groundbreaking move that bolstered BTC’s credibility and appeal to mainstream investors. The company stated that this purchase would provide them with more flexibility to diversify their assets and maximize returns on their cash.
At the time of the acquisition, Bitcoin was trading at $38,800, and it subsequently surged to a high of $60,000 just two months later. To take advantage of this price increase, Musk sold 10% of the BTC for $272 million. However, in the following year, Tesla decided to sell off the majority of its Bitcoin holdings. By the end of Q2, the company only possessed $218 million worth of BTC.
Since then, Bitcoin has experienced a remarkable surge, rising from $21,000 to new record highs exceeding $70,000. This upward trajectory has provided Tesla with a much-needed boost to its assets.
Currently, Bitcoin is trading at $66,485, showing slight gains over the past day despite a minor decrease in trading volume to $23.7 billion.
Commenting on Bitcoin’s recent movement, FXPro analyst Alex Kuptsikevich suggested that the crypto is experiencing cautious testing of the 50-day moving average, but has yet to surpass it for the third consecutive day.
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