Lately, many in the crypto community have felt the negative aftermath of the volatile bitcoin market. Even, Tesla‘s head honcho Elon Musk has been subject to unpredictable changes.
The electric vehicles producer recently disclosed to the Securities and Exchange Commission in an annual report that it suffered a $101 million USD loss due to its recent bitcoin investment. However, it does not impact Tesla’s overall financial health, as the company also reported a balance of $2 billion USD in bitcoin. After selling some of its holdings in March 2021, the company recorded a $128 million profit from its bitcoin investment.
At the beginning of the week, Tesla shares were up by 2%, though stocks have generally fallen over 10% this year as investors have moved out of tech stocks due to underperformance and focused more on “value-oriented sectors such as oil.”
While bitcoin showed promising increases earlier this week, gaining 4% on Monday, the prices of bitcoin have dropped more than 7% this year. Compared to its all-time high of just under $69,000 USD in November 2021, bitcoin has fallen approximately 40% since then. In early 2021, Tesla purchased $1.5 billion USD in bitcoin. Musk has since repeatedly shown support for top cryptocurrencies including dogecoin. Musk’s propensity to lean towards crypto has led Tesla to accept bitcoin as a form of payment.
Though bitcoin has proven to be extremely volatile, Musk and Tesla remain bullish about the currency. In the SEC filing, the company claimed,
“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash. As with any investment and consistent with how we manage fiat-based cash and cash equivalent accounts.
We may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions.”
In other crypto news, the FTX will be giving away Bitcoins during the Super Bowl.
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