Within three months, Tesla made more money from bitcoin than the company got from its core business, which is car sales. The company had invested $1.5 billion in bitcoin in February 2021.
By the end of March, that investment had climbed to $2.5 billion after gaining about $1 billion within two months. Within the same period, Tesla had recorded loss in car sales, making the cryptocurrency investment a right call.
According to the automotive company’s financials released recently, Tesla had sold about 10 percent from its bitcoin investment, and reported $101 million as profit from the crypto sale, while receiving $272 million in proceeds.
During the first three months of 2021, Tesla’s total profit was $438 million, but when the proceeds and profit are excluded from the amount, it showed a loss of $25 million in car sales and solar panels.
Bitcoin had accounted for a quarter of that earnings, but the company said it is holding its remaining bitcoin. Although, the revelation of Tesla selling part of its holding had created uncertainty.
Tesla is one of the notable names with large investment in bitcoin, and when its financials was released on Monfay, Ripples Nigeria noted that bitcoin dipped to $47,272 before surging to $53,531 on April 27, 2021.
The surge had occured after Tesla and its Chief Financial Officer, Zachary Kirkhorn, revealed that “We do believe long-term in the value of Bitcoin”, he said during investors call.
Kirkhom further stated that, “It is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles.”