According to Tesla’s latest statement with the US Securities and Exchange Commission, the corporation has not sold its Bitcoin and seems to have a favorable view for future cryptocurrency investments.
In a filing with the Securities and Exchange Commission, the electric vehicle maker said that it believes in the long-term role of digital assets. According to the business, this idea applies to cryptocurrencies as both an investment and a liquid currency substitute.
According to the SEC filing, Tesla has not closed its doors to digital asset investments. “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 our view of the market and environmental conditions,” the firm noted.
According to the filing, Tesla has not liquidated any digital assets from its balance sheet since March 31, 2021.
In 2021, the electric vehicle maker invested $1.5 billion in Bitcoin (BTC), selling a part of its assets for a profit of $128 million in March 2021. However, the company’s remaining assets have subsequently suffered an impermanent loss of $27 million.
Notwithstanding this, Tesla’s digital asset assets were reported to have a carrying value of $1.26 billion at the end of the first quarter of 2022. According to Tesla, the fair market value of the digital assets in its control as of March 31st, 2022, was $1.96 billion.
Last February, Tesla entered the digital currency world with a $1.5 billion investment in Bitcoin. The manufacturer became one of the largest investors in the major cryptocurrency at the time due to the surprise decision.
Elon Musk, the CEO of Tesla, suggested that his firm would begin taking Bitcoin payments for new automobiles shortly after. However, Musk eventually reversed his decision, stating that his firm would not enable BTC payments until BTC mining became more ecologically friendly. Bitcoin miners have been accused of using enormous amounts of electricity to mine bitcoins for years.
To that aim, Tesla announced agreements with ‘Blockstream’ and Jack Dorsey’s ‘Block’ last month to build a Bitcoin mining factory that employs solar and battery power. Texas, a hotbed of renewable energy in the United States, is set to host the new mining plant.