Tesla Sold 10% Bitcoin Holding in Q1, 2021 With Proceeds of $272M
Tesla released its Q1 2021 financial result on April 26, which indicated that it has sold 10% of its bitcoin holdings and cashed out about $272M.
This caused a buzz in the crypto world. From a report file from Tesla to SEC on Feb.8, people found that Tesla had made a purchased of $1.5 billion Bitcoin in their balance sheet. This hugely pumped investor’s confidence and Bitcoin saw a continuous surge to around 50,000$ in the following days.
Indeed Tesla made a large profit from their bitcoin investment. Documenting Bitcoin, a twitter account document milestones of bitcoin with over 320k followers, stated that Tesla has made more profit by selling bitcoin than in 14 years of selling car.
It cannot be an unsuccessful investment! From all the shocks of bitcoiners, we know crypto holders are expecting more from Tesla. They are not expected that it will sell Bitcoin so soon. But in a corporate perspective, Zachary Kirkhorn, CFO of Tesla, said:
“But thinking about it from a corporate treasury perspective, we’ve been quite pleased with how much liquidity there is in the bitcoin market. So our ability to build our first position happened quickly. When we did the sale later in March, we also were able to execute on that very quickly. And so as we think about kind of global liquidity for the business in risk management, being able to get cash in and out of the market is something that I think is exceptionally important for us.“
In a word, he praised Bitcoin’s good liquidity that bitcoin can be a investment assets for large fund.
Others suspect Tesla plays the pump and dump game. The Internet celebrity Dave Portnoy said in this game, do not be the last Bitcoin bag holder. In reply, Elon Musk indicates that he hold bitcoin and sold not any of it.
All in all, we cannot require a corporate, whose purpose is to make money, to be “Hold On for Dear Life”. We shall be pleased that Bitcoin has such good liquidity that Tesla can buy and sell with large fund at ease. This will enable Bitcoin be accepted by more large capital in the future.
Also, even though Tesla dumped such a large amount in Q1, Bitcoin still reached its ATH of around 65,000$ on April 12 from data on Tokencan Exchange. What this tell us? The bull is strong more than ever we could image. In long term, 1 million Bitcoin may be too far away, but 100,000$ bitcoin is quite near away!
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