- Tesla did not buy or sell any Bitcoin in the first quarter of 2024, leaving its holdings at 9,720 BTC worth around $711 million.
- Tesla reported a decline in revenue to $12.3 billion in Q1 2024, down from an estimated $21.4 billion, and had a negative free cash flow of $2.5 billion.
- Despite missing revenue and earnings expectations, Tesla’s stock rose 5% in after-hours trading, closing at $144.61 per share.
Tesla’s latest quarterly earnings report provided an update on the status of the company’s substantial bitcoin holdings. Tesla currently owns over $711 million worth of bitcoin and has clung to this investment despite price volatility.
Tesla’s Bitcoin Holdings Remain Intact
In the first quarter of 2024, Tesla did not sell any of its over 9720 bitcoins. This marks the seventh consecutive quarter that Tesla has not sold any of its bitcoin. The company originally invested in bitcoin in early 2021 and sold 10% of its holdings in mid 2022. However, since then Tesla has held steady with its remaining bitcoin stash.
Impact on Tesla’s Balance Sheet
While Tesla did not sell its bitcoin this quarter, the value of its holdings likely increased substantially as bitcoin’s price rose leading up to the recent halving event. This bitcoin price appreciation may have positively impacted Tesla’s balance sheet. However, Tesla did report an overall revenue decline in Q1 2024 compared to projections. The company also had negative free cash flow of $2.5 billion.
Market Reaction
Despite the revenue and earnings misses, Tesla’s stock price increased around 5% in after-hours trading following the earnings release. While Tesla has faced business challenges recently, investors seem confident in the company’s long-term outlook and commitment to emerging technologies like cryptocurrency.
Conclusion
Tesla’s ongoing bitcoin holdings signal the company’s belief in the cryptocurrency as a valuable asset. As the price of bitcoin continues to fluctuate, it will be interesting to see if Tesla chooses to liquidate some of its holdings or acquire more in the future. Either way, Tesla remains one of the most high-profile public companies invested in bitcoin.
