Electric car maker Tesla revealed earlier this year through a filing with the U.S. Securities and Exchange Commission (SEC) that it invested $1.5 billion in the flagship cryptocurrency bitcoin. That investment, despite a short sale after, is up $1 billion.
At the time, Tesla also started accepting Bitcoin payments but dropped them shortly after over environmental concerns. Its CEO Elon Musk kept on tweeting about cryptocurrencies and has shown significant support the meme-inspired cryptocurrency Dogecoin.
According to bitcoin investment tracker Bitcoin Treasuries, Tesla currently owns around 43,200 BTC, which are worth $2.5 billion at current prices, as the cryptocurrency has since risen to trade at $57,400 according to CryptoCompare data.
In the second quarter of the year, Tesla sold 10% of the BTC it initially purchased at a reported average price of around $50,000 per coin already in the green as a way to prove that the cryptocurrency was liquid enough for its balance sheet.
In its Q2 earnings report, the firm showed it had made $128 million selling the BTC it had bought. As Cointelegraph reports, Tesla’s net profits from its cryptocurrency holdings are close to its $1.14 billion net profit. Its revenue then was close to $12 billion, with $10.21 billion coming from car sales and $354 million coming from regulatory credits sales.
Other companies have followed Tesla’s footsteps and invested in the flagship cryptocurrency, including Jack Dorsey’s Square, Galaxy Digital, and Hut 8 Mining. Business intelligence firm MicroStrategy invested before the electric car maker and has been buying BTC since last year.
In total, MicroStrategy owns 114,041 BTC that cost it close to $3.16 billion to acquire. Those coins are now worth $6.57 billion, meaning the firm has already doubled its investment in the cryptocurrency.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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