BlocksInform
According to the latest profit report of the company, electrical manufacturer tesla continued to hold its estimated 9720 BTC for a second consecutive quarter.
The company has firmly refused to sell its remaining bitcoin in the second half of 2022, despite the sale of 75% of its assets in the second quarter.
No Plans To Sell
Electric vehicle manufacturer Tesla has reportedly refused to offload any Bitcoin during the latter half of 2022. This means that the company did not purchase or sell BTC for the second consecutive quarter, the company stated in its income statement. It was in spite of the recent disruption of the crypto market as a result of the FTX stock market collapse. The move follows the company's sale of 75% of its assets in the second quarter.
According to the report, the company held $184 million of Bitcoin as of December 31, 2022, which was down from $218 million in the prior quarter's holdings. However, this was not due to a sale, but rather due to depreciation charges, through a drop in the price of bitcoin. By the end of Q3, Bitcoin's price was standing at about $20,000, as of the end of Q4, it was down to about $16,500.
Massive Selloff In Second Quarter
Tesla also revealed that it had made no changes to its Bitcoin holdings during the third quarter. However, the company surprised many investors during the second quarter when it sold about $936 million in BTC value, which represented almost 75% of its bitcoin holdings. At that time, the company said the move was meant to raise funds because of the uncertainty created by China's COVID-19 lockdown.
However, CEO elon musk also said that the company was open to increasing its Bitcoin exposure going forward, and selling should not be seen as judging the viability of bitcoin as an asset. He further explained that the sale has also proven Bitcoin's liquidity as an alternative to holding cash on the firm's balance sheet. The relocation resulted in Tesla making approximately $64 million in profits.
A quarter of profitability.
The company's latest earnings appeal presented no discussion of its bitcoin holdings or its position on bitcoin. It was a good quarter for tesla, The company recorded profits of $5.7 billion and income of approximately $24.3 billion in the fourth quarter, with enterprise gross margins at their lowest level over the last 5 quarters. The company generated $12.6 billion in annual earnings in 2022. Although the figure was not estimated by analysts, it had a better than expected profit margin.
“In 2022, we produced & delivered 1.3M+ vehicles in Q4. Our quarterly turnover was our highest.
The share price of the company increased slightly after the report and continued to trade in the green, up almost 5%.
