Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: rose berry on April 20, 2023, 11:42:09 AM
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Tesla's Relationship with Bitcoin: A Rollercoaster Ride
In early 2021, Tesla made headlines when it announced the purchase of Bitcoin worth a staggering $1.5 billion. The company also revealed its plan to accept the cryptocurrency as payment for its electric vehicles. This move sparked excitement in the crypto world, and Bitcoin's value surged past $50k.
However, the excitement was short-lived as concerns over Bitcoin's energy consumption began to surface. Tesla responded by cancelling its plan to accept Bitcoin as payment and stating that it would reconsider the decision once the mining process became more energy-efficient.
Despite the setback, Tesla held on to its Bitcoin holdings, constantly adjusting them. In the first quarter of 2022, the company held Bitcoins worth $1.261 billion, but this amount significantly dropped to $218 million in the second quarter. The decline coincided with the 2022 crypto crash fueled by the Terra Luna UST crash.
Tesla held on to its Bitcoin bag through the third quarter of 2022, but during the fourth quarter, the company announced that its Bitcoin holdings were approximately $184 million. This sell-off coincided with the FTX and Alameda Research implosion, which wiped out over $30 billion from the industry.
Fast forward to the first quarter of 2023, and Tesla has announced that its Bitcoin holding remains unchanged at approximately $184 million. It's worth noting that Bitcoin's value increased by over 70 percent during this quarter, but current accounting rules don't allow for Bitcoin gains to be booked.
Tesla's relationship with Bitcoin has been a rollercoaster ride, with ups and downs, twists and turns. Despite the setbacks, the company remains committed to holding on to its Bitcoin holdings and watching the market carefully. Only time will tell what the future holds for Tesla and Bitcoin.