Electric car giant Tesla, led by the ever-influential Elon Musk, revealed important details about its cryptocurrency holdings in its first quarter 2024 update. So, did Tesla sell its Bitcoin (BTC) in these three months when we saw a record in BTC?
Tesla protects its Bitcoin assets
As many expected, Tesla did not sell any of its Bitcoin (BTC) assets worth approximately $711 million in the first quarter. This marks the seventh consecutive quarter that the company has kept its Bitcoin portfolio stable, indicating a long-term strategy. This is an important development because the value of Tesla’s Bitcoin has increased significantly in recent months, due in part to the approval of the long-awaited Bitcoin Spot ETF. As the next Bitcoin halving event approaches, experts believe Tesla’s BTC assets may gain more value.
Despite holding onto its Bitcoin, Tesla’s first-quarter financial report painted a less optimistic picture. The company fell short of revenue expectations, recording $12.3 billion, significantly below the $21.4 billion forecast. Additionally, Tesla reported negative free cash flow of $2.5 billion. These results follow a disappointing Q4 2023 report that raised concerns about the company’s overall performance. However, defying these concerns, Tesla’s stock price rose a surprising 5% in after-hours trading after the results were announced.
Elon Musk and Dogecoin love continues
Elon Musk’s admiration for Dogecoin (DOGE) is well known. With Dogecoin becoming a major player in the cryptocurrency market, speculation has begun to increase that Tesla may accept DOGE as a payment method. cryptokoin.com As we reported, Musk hinted at this possibility during his recent visit to the Gigafactory in Berlin, saying, “At some point Tesla should allow this.” This shows that the company is open to this idea.
Introduced in 2013 as a cheerful meme token, Dogecoin attracted worldwide attention, especially after Musk declared it his favorite cryptocurrency in 2019. Musk’s tweets have significantly affected the price of DOGE in the past. Interestingly, Musk reiterated his support for Dogecoin during his visit to Berlin, enthusiastically saying “DOGE to the moon.” This has reignited discussions among crypto enthusiasts regarding the future of meme coin.
Why DOGE and not BTC?
While Tesla previously accepted Bitcoin as a payment method, concerns about the environmental impacts of BTC mining caused the practice to be discontinued. Dogecoin uses a similar consensus mechanism but produces much lower emissions. This makes it a potentially more environmentally friendly and secure alternative to Bitcoin for Tesla.
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