In the first quarter, Tesla experienced a 15% decrease in revenue, but the company has decided to hold onto its Bitcoin stash, which is currently valued at $645 million. Similarly, Elon Musk’s other company, SpaceX, has also shown confidence in Bitcoin by holding onto its 8,290 BTC, worth $550 million.
Tesla recently announced its financial results for Q1, revealing a 9% decline in revenue, marking its largest decrease in 12 years. Despite these challenging times, Elon Musk has chosen to maintain his trust in Bitcoin, and the company did not sell any of its BTC during this period.
As the world’s largest electric vehicle manufacturer, Tesla earned $21.30 billion in the first three months of the year. However, this fell short of analyst expectations of $22.15 billion and was a significant decrease from the $25.17 billion recorded in the previous quarter and $23.33 billion from the same period last year.
This decline in revenue reflects the difficult situation Tesla is currently facing, as traditional automakers continue to gain ground in the EV market and the company struggles to maintain its presence in Asia. Additionally, Tesla recently laid off 14,000 employees, amounting to 10% of its global workforce, and according to Bloomberg, this number may double in the near future.
Over the past four months, Tesla’s stock has also experienced a sharp decline. Year-to-date, it has lost over 34% of its value, dropping from $248 to its current price of $162.40.
Despite these challenges, Tesla has remained steadfast in its commitment to Bitcoin. As reported by Crypto News Flash, the company’s Bitcoin holdings of 9,720 BTC have remained unchanged since the third and fourth quarters of last year. In its latest earnings report, Tesla confirmed that it continues to hold this Bitcoin stash, which is now valued at $647 million.
At the beginning of 2021, Tesla made headlines by acquiring $1.5 billion worth of Bitcoin, a move that provided much-needed credibility and mainstream appeal to the cryptocurrency. The company stated that this purchase would offer greater flexibility for diversification and maximize returns on its cash holdings. At the time of purchase, Bitcoin was trading at $38,800, and it subsequently surged to a high of $60,000 just two months later. Taking advantage of this price increase, Musk sold 10% of the BTC for $272 million. However, Tesla later sold off most of its Bitcoin, and by the end of Q2, the company only held $218 million worth of the cryptocurrency.
Since then, the price of Bitcoin has skyrocketed, going from $21,000 to reaching new record highs above $70,000. This has provided a significant boost to Tesla’s assets.
Currently, Bitcoin is trading at $66,485, showing slight gains over the past day despite a slight decrease in trading volume to $23.7 billion.
Commenting on Bitcoin’s recent movement, FXPro analyst Alex Kuptsikevich noted that it has been avoiding major fluctuations and has remained within the previous day’s range. He also highlighted that Bitcoin seems to be cautiously testing the 50-day moving average, which is currently at $67,300, but has not yet surpassed it for the third consecutive day.
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