Bitcoin leaped with relief over the past 7 days, showing all the signs of a firm determination to conquer the $45,000 retest level. Within the early hours of the week, it had consolidated a 13% value gain as it hovered around the $42,000 value region. It received a significant bolster upon the news of Tesla’s financial reporting, which revealed the global EV manufacturer had close to $2 billion worth of Bitcoins in its coffers.
Tesla had reported this amount in its latest form 10-K filing with the US Securities and Exchange Commission giving a breakdown of how it had gained an extra $500 million from its initial purchase of $1.5 billion, during the year. Its balance sheet revealed that the company still maintains the historical value of its BTC holdings. A total of $101 million were written off as impairment losses and it reported total gains to the tune of $128 million, leaving a net gain balance of $27 million.
Tesla’s Bittersweet BTC Alliance
Back in May, a boisterous Elon Musk dragged the BTC market to a standstill after cutting off plans for the company to accept BTC as payment for Tesla vehicles. The announcement, which the Tesla CEO claims was borne out of genuine environmental concerns, sent BTC spiraling down to $30,000 historical resistance.
The company had added that it would look into adopting any other cryptocurrency with a <1% energy consumption rate but is yet to make its choice. Last month, Tesla opened up its merchandise store for purchases using Dogecoin—a meme-themed cryptocurrency that has become one of Elon’s personal crypto projects. Many have since criticized this move as an attempt to artificially manipulate the market and create a short profit-taking session.
With over $53 billion reported in total revenue for 2021, Musk is looking to expand his market across Asia and sustain the controversial relationship with China. Part of its planned improvement will focus on creating more powerful and portable lithium batteries for its car model. Its current capacity, which sits around 203kWh, has been reported effective in the use for crypto mining purposes.
With the current price of Bitcoin at $43,519, Tesla’s 46,875 BTC is worth over $2 billion, but it is unlikely that it would wish to sell soon.