Tesla and its Manager Elon Musk have been key drivers of bitcoin-mania
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Tesla's bitcoin holdings were worth $2.48 billion at the end of the year, SEC filings show.The electrical vehicle manufacturer originally purchased $1.5 billion of bitcoin in January and now takes the cryptocurrency for a kind of payment because of its products.Tesla said it sold 10 percent of its own bitcoin holdings worth $272 million from the first quarter to demonstrate its liquidity. Sign up here to our everyday newsletter, 10 Things Before the Opening Bell.
Tesla possessed $2.48 billion worth of bitcoin at the conclusion of the first quarter, according to the company's first-quarter SEC filings.
The electric vehicle manufacturer originally purchased $1.5 billion of bitcoin from January and today takes the cryptocurrency for a form of repayment for its own products. It is uncertain if Tesla received any bitcoin for the products in the first quarter.
Bitcoin surged more than 100 percent in the first three weeks of 2021, meaning that Tesla'therefore is sitting significant unrealized gains with its own crypto position.
The business said it sold $272 million of bitcoin from the first quarter, recognizing a gain of $101 million. Musk explained the bitcoin sale in the first quarter was to prove that it is liquid and a substitute for money.
The CEO said in a tweet responding to David Portnoy's criticism of bitcoin as a "pump and ditch " scheme: "…I have not sold any of my Bitcoin. Tesla sold 10 percent of its holdings essentially to establish liquidity of Bitcoin instead to holding money on balance sheet. "
Tesla's possessed 41,953 bitcoin at the conclusion of the first quarter, based off of the cryptocurrency's closing price of $59,114 on March 31.
Bitcoin has staged a volatile trading path in April, with all the cryptocurrency hitting a record high of nearly $65,000 before tumbling more than 20% to under $50,000. Bitcoin has since recovered some of its own losses and is trading at $55,180 at Wednesday morning.
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