Tesla Open to Further Crypto Investments Per SEC Filing
Tesla has not sold its Bitcoin and seems to have a positive outlook for future crypto investments, as revealed by the company’s recent filing with the U.S. Securities and Exchange Commission.
In a document submitted to the SEC, the electric car manufacturer disclosed that it believes in the long-term potential of digital assets. The company states that this belief applies to cryptocurrencies as both an investment and a liquid alternative for cash.
The SEC filing also disclosed that Tesla has not shut its doors to digital asset investments. “As with any investment and consistent with how we manage fiat-based cash and cash-equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of the market and environmental conditions,” the company stated.
Tesla Is Holding
The document also confirmed that Tesla has not sold any digital assets from its balance sheet since 31st March 2021.
The electric car manufacturer invested $1.5 billion in Bitcoin (BTC) in 2021, selling a portion of its holdings in March 2021 for a profit of $128 million. The assets still held by the company have since recorded an impermanent loss of $27 million.
Despite this, Tesla reportedly had $1.26 billion in carrying value through its digital asset holdings at the end of the first quarter of 2022. The fair market value of the digital assets in Tesla’s possession as of March 31st, 2022, was $1.96 billion, the company revealed.
A Shift to Bitcoin Mining
Tesla stormed into the cryptocurrency world last February, making a $1.5 billion investment into Bitcoin. The unexpected move made the manufacturer one of the biggest investors into the dominant crypto at the time.
Soon after, Tesla’s CEO Elon Musk hinted that his company would start accepting Bitcoin payments for new vehicles. However, the decision was later rescinded, as Musk claiming that his company would not support BTC payments until BTC mining takes a more environmentally-friendly direction. For years Bitcoin miners have been accused of using extremely high amounts of energy to mine bitcoins.
To that end, Tesla last month announced partnerships with ‘Blockstream’ and Jack Dorsey’s ‘Block’ to create a Bitcoin mining plant that uses solar and battery power to mine bitcoin. The new mining facility is expected to be built in Texas, a haven of renewable energy in the U.S.
Please support thecryptocoinreport.com by sharing this post. Also, support us on https://twitter.com/the_crypto_coin and on instagram.com/the_crypto_coin_report/