Electric car giant Tesla did not buy or sell any bitcoins in the first quarter of 2023. The company last traded in the second quarter of 2022, when it sold 75% of its BTC holdings in response to rising production costs.
The electric car maker, led by Elon Musk, announced that its bitcoin holdings were untouched during the first three months of the year. The company continues to hold 11,950 BTC, equivalent to approximately $345 million.
This is the third consecutive quarter that Tesla did not sell or buy any BTC. Its latest major deal in the crypto space occurred in the second quarter of 2022, when it sold $936 million worth of leading digital assets (75% of its total assets). Musk explained the move was critical as Tesla's record production costs in China soared to unprecedented levels as another COVID-19 lockdown hampered the local economy. The nearly $1 billion generated by the sale helped the company cover unpredictable expenses, he said.
Contrary to the company's choice, Musk assured that he did not sell his crypto assets. Besides Bitcoin, he has also invested in Ethereum (ETH) and Dogecoin (DOGE). memecoin is actually his favorite digital asset, which he thinks is better for trading and settlement than BTC. The tech giant has been deeply involved in the industry since early 2021, when it bought up to $1.5 billion worth of bitcoin. The acquisition added fuel to an already red-hot bull market, pushing asset valuations to record highs above $42,000.
A few months later, Tesla doubled down on its bet by allowing customers to buy company vehicles with BTC instead of fiat currency, triggering another price hike.
The two's honeymoon period ended in May 2021, when Tesla suspended the payment method, citing high network energy consumption. BTC dropped from $55,000 to $52,000 within minutes of the disclosure. Musk, on the other hand, said his company may revert to that option once there is evidence that at least 50 percent of bitcoin mining is powered by renewable energy. A recent study estimates that the process has already moved in this direction, with more than 52% of energy coming from renewable sources.
