Search

Tesla is now sitting on $2.5 billion of bitcoin - CNBC

ketokdepan.blogspot.com
Elon Musk, CEO of Tesla, stands on the construction site of the Tesla Gigafactory in Grünheide near Berlin, September 3, 2020.
Patrick Pleul | picture alliance | Getty Images

Tesla is sitting on roughly $2.5 billion worth of bitcoin, according to a securities filing, giving the automaker a significant gain on paper just a few months after investing.

The automaker said its investment in the volatile cryptocurrency was worth $2.48 billion at the end of March. The company announced earlier this year that it had purchased $1.5 billion worth of bitcoin and planned to accept it as payment for vehicles.

Tesla said Monday it registered a net gain of $101 million from sales of bitcoin during the quarter, helping to boost its net profits to a record high in the first quarter. That figure included a $27 million impairment and $128 million in realized gains, according to Wednesday's filing.

Tesla does not account for bitcoin as a mark-to-market asset, meaning it only recognizes an earnings benefit if it sells to lock in the gains.

Bitcoin was trading near $59,000 on the final day of March, slightly above its price Wednesday morning. The crypto asset has swung widely in the intervening weeks, trading well above $60,000 before falling sharply to below $50,000.

Shares of Tesla were down 1.6% in premarket trading Wednesday. The stock, which has been one of the best performers in recent years, has dropped more than 15% in the past three months.

Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now

Let's block ads! (Why?)



"now" - Google News
April 28, 2021 at 06:07PM
https://ift.tt/3u0xYax

Tesla is now sitting on $2.5 billion of bitcoin - CNBC
"now" - Google News
https://ift.tt/35sfxPY


Bagikan Berita Ini

0 Response to "Tesla is now sitting on $2.5 billion of bitcoin - CNBC"

Post a Comment

Powered by Blogger.