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Tesla's Bitcoin holdings increase to $2.5 billion

Updated: Aug 31, 2024
Published: Apr 28, 2021
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Bitcoin's price has appreciated in value over the past few months, rising by roughly 100% since the start of the year. This rapid rise has seen companies that invested in Bitcoin generate massive profit, and Tesla is one of them.

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Tesla's Bitcoin investment rises

Electric car manufacturer Tesla has revealed that it's Bitcoin investment has massively increased over the past few months. The company noted this in its securities filing for the first quarter of the year.

According to the securities filing, Tesla now holds $2.5 billion worth of bitcoins in its balance sheet. This represents an increase of nearly $1 billion after the company invested $1.5 billion in Bitcoin in February.

Cryptonary reported in February that the electric car manufacturer allocated $1.5 billion from its cash reserves to purchase bitcoins. "Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term," the company said.

At the time when Tesla bought the bitcoins, the leading cryptocurrency was trading around $39,000. It has since gone on to rally and set a new all-time high close to the $63,000 mark. Although Bitcoin's price is down to the $55k region, Tesla's investment has gone up sizably in two months.

Tesla reported its Bitcoin holdings a few days after selling $272 million worth of bitcoins. In its earnings report on Monday, the company revealed that it had sold some of its bitcoin and received $272 million in proceeds.

Tesla also accepts Bitcoin as payment

The electric car manufacturer began accepting Bitcoin as a form of payment for its vehicles last month. According to Elon Musk, Tesla has no intention of converting the bitcoins it obtains from its car sales to fiat currencies.

Currently, the payment option is available to its customers in the United States, but Tesla is working on expanding it to other countries in the coming months.

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