Tesla And Bitcoin: The Mistake That Costs 3 Billion Dollars
On December 5, 2024, Tesla could have made an additional 3 billion dollars if it had held onto its bitcoins instead of selling them at $31,000. In 2021, Tesla invested 1.5 billion dollars in bitcoin, buying approximately 39,474 BTC at an average price of $38,000 per token. However, in July 2022, the company sold 75% of its bitcoin holdings, reducing its total to about 9,868 BTC.
Tesla misses out on 3 billion dollars by selling bitcoin at $31,000
In July 2022, when Tesla sold 75% of its BTC holdings, the price of the cryptocurrency had fallen to around $18,900. If Tesla had kept its entire initial investment, the value would have exceeded 4 billion dollars! Currently, with bitcoin reaching $102,000, Tesla’s remaining holdings are only worth around 1 billion dollars.
This sale allowed Tesla to recover around 936 million dollars, but at an average selling price of $31,615, well below the initial purchase price. If Tesla had retained its BTC, the value of its holdings would have significantly increased with the recent rise in the price of BTC.
A decision influenced by the environmental impact of BTC mining
Tesla’s decision to sell a large portion of its bitcoins was made amid growing concerns about the environmental impact of bitcoin mining. Elon Musk, Tesla’s CEO, announced in May 2021 that the company would no longer accept bitcoin as payment for its vehicles, citing environmental concerns. This announcement caused a significant drop in the price of BTC, which fell from $56,000 to $49,400 in a single day.
The premature sale of bitcoin by Tesla highlights the challenges of managing crypto assets. By missing a $3 billion opportunity, Tesla reminds investors of the importance of patience and strategy in a volatile and ever-changing market.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.