Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Did Tesla Really Sell Bitcoin? Some, According to Earnings Report

Did Tesla Really Sell Bitcoin? Some, According to Earnings Report

Tesla adding Bitcoin to its corporate treasury back in February was considered an inflection point for the cryptocurrency. A major corporation adopting BTC into its balance sheet seemed like a sign that the BTC has gone mainstream.

CEO and “Technoking of TeslaElon Musk was apparently convinced by MicroStrategy’s CEO Michael Saylor to follow a similar treasury strategy and incorporate Bitcoin into their balance sheet. However, Tesla’s recent Q1 earnings report shows that the car manufacturer has followed a strategy of its own.

The company announced a $1.5 billion BTC purchase. Their earnings report shows that Tesla sold a portion. At least 9% of its BTC, according to the document, Tesla made a $272 million profit. The company still holds around $2.6 billion in the cryptocurrency. The company revealed the following:

“Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in Restructuring & Other line), were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items.”

There apparently has been some confusion on the matter of whether Elon Musk himself sold his bitcoin. Dave Portnoy Tweeted:

"So am I understanding this correctly? @elonmusk buys #bitcoin. Then he pumps it. It goes up. Then he dumps it and make a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don’t be last 1 #HODLing the bag."

Elon Musk was quick to correct that it was in fact Tesla that sold some of the Bitcoin; he is still holding his personal coins:

"No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet."

Bitcoin’s Performance Takes A Hit After Tesla’s Disclosure

After showing signs of recovery during the past day. Bitcoin seems to be reacting negatively to Tesla’s report. When the company announced its BTC purchase, the cryptocurrency went from the high range at $38,000 to $53,000.

As trader Luke Martin reported, on February 8th, when Tesla’s purchase was made public, Bitcoin has its “largest candle in history”. The cryptocurrency went from a low at $38,058 to a high at $46,929 with an $8,871 increase in less than 24-hours. Martin said the following in the report:

“Bitcoin price is still higher than where Elon got in. It doesn’t really matter if he sells 10% of his stack. There will be corporate whales like Saylor that hold forever and whales like Elon that sell on a double. It’s still bullish that this new type of buyer is here at all.”

Other members of the crypto community believe Tesla is “trading” Bitcoin and could create selling pressure on the market. Lawyer Collins Belton said Tesla must still follow a corporate treasury management plan.

According to the expert, the company could have commitments and must still stick to an investment policy. Therefore, Tesla’s finance department must still achieve “certain targets” which take BTC’s volatility into account. Belton added:

“They could be losing hope, but I’m pretty skeptical that they’d have gone through that much legal diligence to immediately flip a few months later.”

BTC is trading at $53.396 with a 12.5% profit in the daily chart. In the weekly and monthly chart, BTC shows a 3% and 5% loss, respectively. The market cap stands at $998 billion.

Source: Fintechs.fi - Fintech News

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×