Tesla is now sitting on $ 2.5 billion in Bitcoin


Elon Musk, CEO of Tesla, will be on the construction site of the Tesla Gigafactory in Grünheide near Berlin on September 3, 2020.

Patrick Pleul | Image Alliance | Getty Images

According to a securities filing, Tesla is sitting on Bitcoin valued at around $ 2.5 billion, which gives the automaker a significant profit on paper just a few months after the investment.

The automaker announced that its investment in the volatile cryptocurrency was valued at $ 2.48 billion at the end of March. The company announced earlier this year that it had purchased $ 1.5 billion worth of Bitcoin and planned to accept it as payment for vehicles.

Tesla announced Monday that it posted $ 101 million in net income from the sale of Bitcoin for the quarter, which helped push net income to a record high in the first quarter. Tesla does not consider Bitcoin as a market value, meaning it only captures a profit advantage when it sells to secure profits.

Bitcoin traded near $ 59,000 on the last day of March, slightly above its price on Wednesday morning. The crypto asset has changed a lot in the past few weeks, trading well above $ 60,000 before falling sharply below $ 50,000.

Tesla’s shares fell 1.6% in premarket trading on Wednesday. The stock, which was among the best in the past few years, has fallen more than 15% in the past three months.

Did you like this article?
For exclusive stock selection, investment ideas and CNBC Global Livestream
Sign up for CNBC Pro
Start your free trial now



Source link

Posted in Tech

Leave a Comment

Thanks for visiting get comfortable with the space, officially registering is the most important thing to do right now The first big project won’t start until your on board.