Tesla, which invested heavily in cryptocurrency, made profits by selling some of its Bitcoin in the first quarter.
According to CNBC and Business Insider, Tesla sold 227 million dollars worth of bitcoin in its first quarter earnings report.
How Bitcoin plays its part in making profits for Tesla
The profit from selling Bitcoin is 101 million dollars. The current cryptocurrency is about 1.33 billion dollars.
Tesla announced its purchase of 1.5 billion dollars worth of cryptocurrency in February and said it would invest extensively in cryptocurrency. Cash and current assets amounted to 8% of $19.4 billion.
At that time, Bitcoin’s price rose by about 10 million won from 38,000 dollars to 47,000 dollars a day after Tesla’s announcement.
Tesla gave a positive assessment of Bitcoin investment. Elon Musk and Tesla Chief Financial Officer (CFO) Zachary Kirkhorn stated they were looking for a place to store cash. As a result Bitcoin investment proved to be a good decision.
“It’s a good way to make a profit by investing some of the cash that we don’t use in our lives,” he added. “We intend to hold it in the long term.”
But there was also a voice of criticism. Thus CEO Elon Musk over-promoted cryptocurrency through social media, contributing to the surge in prices as stated by Business Insider.
It’s not clear how it contributes to electric vehicles and energy storage businesses, stated CNBC of Tesla’s cryptocurrency investment. The mission stated in Tesla is to accelerate the transition to sustainable energy for a long time.