Elon Musk’s Tesla Bitcoin stash grows to $2 billion

Tesla reported that its Bitcoin holdings were worth $1.99 billion at December 31, 2018. This figure was disclosed Monday in Tesla’s annual filing to the US Securities and Exchange Commission.

The company filed that it suffered impairment losses of approximately $101 million due to changes in Bitcoin’s value and gains of $128 millions from certain Bitcoin sales. For several months, the company accepted cryptocurrency as payment for its products in 2021.

According to the filing, Tesla invested $1.5 billion in Bitcoin during the first quarter 2021. Although the filing does not disclose the date of purchase, it is clear that the price of Bitcoin fluctuated between $29.405 in January and $61,177 mid-March. The price of Bitcoin fluctuated between $45,700 to $48,500 on December 31, 2021. According to CoinGecko’s database, Tesla has 48,000 Bitcoin.

According to CoinGecko, Tesla is the second largest holder of Bitcoins in the corporate world. MicroStrategy, a Virginia-based business intelligence and software company, has the largest holdings, totaling more than 121,000 Bitcoin valued at more than $5B.

Tesla CEO Elon Musk has posted messages on Twitter that have had an impact on the Bitcoin price on multiple occasions. He added #bitcoin in his Twitter bio in January 2013, which drove the token’s value up as high as 20%. He stated that he believed the token would gain broad acceptance in finance.

He did, however, make a U-turn and voiced concerns about the cryptocurrency’s energy consumption and impact on the environment. He announced in May that Tesla would no longer accept Bitcoin payments for its products due to concerns about “rapidly growing use of fossil fuels, particularly coal, for Bitcoin mining and transactions.”