The firm made its grand debut in the cryptocurrency world using bitcoin.
Tesla had claimed it acquired $1.5 billion in bitcoin.
Tesla has said that it believes in the long-term potential of crypto assets in one of its SEC filings. Even though Dogecoin had been widely regarded as Elon Musk’s preferred cryptocurrency, the firm made its grand debut in the cryptocurrency world using bitcoin.
No Purchase in Last 4 Quarters
Even though the mining of Bitcoin had a detrimental influence on the environment, Musk kept it beneath the curtains and continued to hoard it. But according to reports, Tesla hasn’t purchased or sold any bitcoin in the last four quarters.
In February of last year, Tesla had claimed it acquired $1.5 billion in bitcoin. However, there was no movement until the firm had to record a $51 million loss to show the reduction in bitcoin’s price in the third quarter. Tesla seems to have a solid foundation in crypto. As indicated in one of its most recent SEC filings, in January 2021, the business considered diversifying its portfolio and investing in digital assets and gold bullion.
According to the filing:
“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash. We may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”
Digital assets have been volatile in the past and the present, according to the company’s report. Moreover, because they rely on technology for their production, validation, and continued existence, digital assets are likewise vulnerable to vicious assaults and technical obsolescence. The corporation also said that if the fair values fall, they would have to record impairment costs.