Tesla Sells Part of Its Bitcoin Holdings, Earns $101 Million

According to the Electrek portal, Tesla sold part of its Bitcoin holdings in the first quarter of this year, earning $101 million from the transaction.

Tesla founder Elon Musk confirmed on Twitter that the company had engaged in cryptocurrency transactions to demonstrate Bitcoin’s liquidity as an alternative to holding cash on the balance sheet.

Tesla’s Chief Financial Officer, Zachary Kirkhorn, clarified that the company sold 10% of its total Bitcoin holdings for $272 million. As a result of this deal, Tesla made a profit of $101 million. The company plans to keep and accumulate its remaining crypto assets. Currently, Tesla holds $1.331 billion worth of Bitcoin.

In early February 2021, Tesla announced that it had invested $1.5 billion in Bitcoin. The company intends to continue purchasing cryptocurrency and to use it as payment for some of its products and services, in accordance with U.S. law. Tesla stated that it understands and accepts all risks and uncertainties associated with the volatility and unpredictability of the cryptocurrency market and plans to hold its new digital assets for the long term.

On March 15, 2021, Tesla notified the U.S. Securities and Exchange Commission (SEC) that Elon Musk had taken on the title of “Technoking” at the company, while CFO Zach Kirkhorn received the title “Master of Coin.”

On March 24, 2021, Tesla began selling electric vehicles for Bitcoin. Customers do not lose money on conversion to dollars when paying with Bitcoin. Tesla accepts cryptocurrency payments directly, using its own open-source software.