The automaker, Tesla, pocketed a net profit of $101 million from selling bitcoin.
Quoting CNN, Wednesday (28/4), the company bought up $1.5 billion worth of bitcoin in February. After a month, the value had become $2.5 billion, or an increase $1 billion at the end of last March.
Tesla Sells 10% of His Bitcoin
Furthermore, the company owned by Elon Musk said that in its first quarter 2021 financial report, they had sold 10 percent of their bitcoin holdings.
Tesla managed to pocket a profit of $128 million from the sale of the bitcoin. However, the company also lost $27 million from the sale of other volatile assets. Thus, in total Tesla was only able to pocket a profit of $101 million.
The sales loss came from a 10 percent drop in bitcoin prices this month to a level of US $ 54,700 per coin. In fact, the price was almost $65 thousand at the beginning of the month.
Tesla Finance Director Zachary Kirkhorn told investors that investing in bitcoin has so far proven to be the right decision for the company. In fact, he was dubbed the ‘master of coin’ of Tesla, which was inspired by Game of Thrones. Meanwhile, the boss, Elon is dubbed the ‘technoking’.
The company decided to invest in bitcoin from a surplus of funds, so that it could generate returns. Through this yield, Tesla obtained additional liquidity while building new factories outside Austin, Texas and Berlin.
Kirkhorn said Tesla was quite happy with the amount of liquidity there was in the bitcoin market. “Being able to access our cash very quickly has become very important to us at the moment. There are not many traditional opportunities that offer this, at least what we have found,” he said.
Tesla Believes on the Prospect of Bitcoin
However, he said the company will hold most of bitcoin holdings in the long term. The reason is, he believes in the bright prospects of bitcoin.
Additionally, Tesla is taking a closer look at the cryptocurrency market. However, he was reluctant to reveal more details about this.
