• Tesla has not sold any Bitcoins in the fourth quarter of 2022, resulting in a decrease of $33 million in its digital assets value from the third quarter.
• Elon Musk cited environmental concerns as the reason for canceling plans to add Bitcoin as a payment option for Tesla products.
• Microstrategy, on the other hand, sold Bitcoin for the first time, indicating a shift in market sentiment.
Tesla, an American multinational electric car manufacturer, has released its earnings report for the fourth quarter of 2022. The firm spearheaded by Elon Musk continues to hold the same position on Bitcoin (BTC) compared to its Q3 2022 report. The firm has not sold or purchased any BTC. Despite this, the value of the cryptocurrency has dropped over the two quarters. According to the report, Tesla’s digital assets were worth $184 million, a decrease of $33 million from its Q3 report which was valued at $218 million.
Tesla made headlines in early 2021 when it placed its bet on Bitcoin by buying BTC worth $1.2 billion. However, the firm backtracked on the move by selling 75% of its holdings in July 2022. The sale boosted Tesla’s cash holdings by $936 million in its balance sheet. Notably, the firm took a sell position on the king coin right when the bear had taken a hold of the entire crypto market. In addition, Tesla had plans of adding the king coin to its payment options. However, the firm canceled the plans, with Musk citing environmental concerns as the reason. He stated, „Tesla’s mission is accelerating the interest of sustainable energy. We can’t be the company that does that and also not do appropriate diligence on the energy usage of Bitcoin“.
Despite canceling BTC payments, Musk extended his support to Dogecoin (DOGE), a leading meme coin. The firm enlisted it as a means of payment for select merchandise. And, it is yet to accept cryptocurrency for purchasing its electric vehicles.
On the other hand, Microstrategy, an American business intelligence firm, sold Bitcoin for the first time. This indicates a shift in market sentiment. The firm sold a total of 16,796 worth of BTC in the fourth quarter of 2022. This amount was part of the firm’s total holdings of 90,531 worth of BTC. This sale resulted in a decrease of $17 million in the firm’s digital assets value.
Overall, the fourth quarter was quite volatile for the crypto market. Tesla’s digital assets value has seen a significant drop compared to Q3 while Microstrategy sold Bitcoin for the first time. It remains to be seen how Tesla’s stance towards cryptocurrency will evolve in the future.