Tesla Bought 1.5 B in Bitcoins

[fillippone]

Electric car maker Tesla (TSLA) sold $936 million worth of bitcoin, or 75% of its holdings, in the second quarter, the company reported Wednesday in its earnings report.

• The company ended the second quarter with just $218 million in bitcoin, down from $1.26 billion in the previous three quarters.

It's confusing to talk in dollars. I'd like to see the total overview: how many Bitcoins did they buy for what price, and how many did they sell for what price?
It sounds like Musk follows the "buy high, sell low" strategy

This is my best understanding of the current situation:



Data is pretty confusing, TSLA reporting is quite different from MSTR, so, as the numbers don't add up, I am not sure which data is "certain".

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[JayJuanGee]

Electric car maker Tesla (TSLA) sold $936 million worth of bitcoin, or 75% of its holdings, in the second quarter, the company reported Wednesday in its earnings report.

• The company ended the second quarter with just $218 million in bitcoin, down from $1.26 billion in the previous three quarters.

It's confusing to talk in dollars. I'd like to see the total overview: how many Bitcoins did they buy for what price, and how many did they sell for what price?
It sounds like Musk follows the "buy high, sell low" strategy

This is my best understanding of the current situation:



Data is pretty confusing, TSLA reporting is quite different from MSTR, so, as the numbers don't add up, I am not sure which data is "certain".

For sure many of us longer term bitcoiners are going to question buying high and selling low (even though the buy price and the sell price were not that different) and also we are going to question over-investing and failing to have a sufficiently long investment time horizon of at least 4 years.. and perhaps even longer than a four-year time horizon should be a prudent approach.. ..or at least be able to hold out long enough in such investment in which bitcoin will likely become profitable before selling any of them.

Nonetheless, those numbers don't really look that bad - even if there were sales at a loss for some of the cornz  - even though part of the problem is going to remain for anyone (whether business, individual or government) who sold under those kinds of conditions regarding when to get back in.. because selling like that may well show over-investment had occurred and also psychological damage had occurred too (if it had not already been present previously).

Musk is retarded as fuck in his various public stances in regards to Doge coin.. so that really causes a lot of us to not trust his judgement in regards to how his company had treated their bitcoin investment, even though the company has not had as much involvement in Doge coin.. .. and even some of that seems dumb to accept payments in doge coin... .. which shows a pretty damned BIG failure to understand what is bitcoin... whether only a Musk phenomena or something that actually got into the company's analysis of bitcoin, too (payments, treasury, mining, communications with space aliens, or whatever other considerations that they might have made regarding the compare/contrast of bitcoin, doge coins and/or various other shitcoins that they might have entertained)

[PrimeNumber7]

Musk said Tesla will remain open to increasing its bitcoin holdings in the future, and the reason for the sale was to shore up their cash on hand due to issues with lockdowns in China related to Covid.

I think those Musk Declaration were an important part of the story:

CEO Elon Musk said during Tesla's earnings call that the company sold the majority of its bitcoin to maximize its cash position, "given the uncertainty of the COVID lockdowns in China." He added, however, that Tesla is open to boosting its bitcoin exposure in the future, and "this should not be taken as some verdict on Bitcoin." Musk also said Tesla had not sold any of its dogecoin.

An important fact to me: according to their slide, I attached to the previous post:

positive free cash flow of $621M

According to their statement:

it sold 75% of that amount for $936 million,

Tesla would have been negative cash in the quarter if they hadn't sold the Bitcoin Stash.

if you look at slide 3 of the slideshow previously posted, the $621 million figure is operating cash flow, and I don't think the sale of bitcoin is included in this figure. Slide 5 says that total cash (including cash equivalents) increased by $904 million and that they repaid $402 million in debt.

You could say that their total cash on hand would have declined if not for the sale of their bitcoin. However, I don't think they sold their coin for this reason, as they sold their coin fairly early in the quarter. They also could have made other decisions based on the fact that they had the extra cash from the sale.

[fillippone]

Tesla Sells Bitcoin for $64M Profit, Still Posts $170M Impairment Loss

Plunging bitcoin prices have forced Tesla to record a $170 million impairment loss alongside solid second-quarter earnings, which saw a 42% jump in revenue.

Ah, I missed that.
I noted that Tesla hadd different accounting standard from Microstrategy, but this was probably because they were more clever “hiding” those impairments in their balance sheets.


I will try to reconstruct the numbers of those impairment losses via my usual Worksheets.

[Ozero]

At one of the conferences on August 05, Elon Musk said that Tesla had already sold 90 percent of its bitcoins, which were previously bought at the beginning of last year in the amount of $ 1.5 billion. At the same time, he said that experts believe that the peak of inflation in the United States has already passed and the world economy will gradually recover. At the same time, risky assets, including cryptocurrency, should grow in price. Therefore, he said that after some time he does not exclude that Tesla will again become interested in bitcoins.

[Kadal Ijo]

Many are worried that when Tesla sells bitcoin, it will have a red market impact, but the facts prove that the market looks normal and even rises, with this fact will make Elon Musk and anyone who buys bitcoin that they think with large amounts but the Bitcoin community is bigger and not Panic and many are happy because they can buy Bitcoin at low prices.

[fillippone]

Many are worried that when Tesla sells bitcoin, it will have a red market impact, but the facts prove that the market looks normal and even rises, with this fact will make Elon Musk and anyone who buys bitcoin that they think with large amounts but the Bitcoin community is bigger and not Panic and many are happy because they can buy Bitcoin at low prices.

I recall they sold a small percentage of their BTC holding in offer to see if the market was liquidd enough to absorb these coins without the price moving too much.

I guess we can be quite satisfied by the liquidity nowadays as the prince barely moved over the  sell by Tesla.
This is a very important maturity sign for bitcoin markets.

[Die_empty]

I recall they sold a small percentage of their BTC holding in offer to see if the market was liquidd enough to absorb these coins without the price moving too much.

I guess we can be quite satisfied by the liquidity nowadays as the prince barely moved over the  sell by Tesla.
This is a very important maturity sign for bitcoin markets.

It is quite interesting to see that Bitcoin is very independent and is not highly influence by actions or inactions of individuals or corporations. It is not like other shitcoins that rely on the hype of influencial individuals or companies to get recognition or acceptance. Also the negative actions attacks of these individuals doesn't also affect it's price to a large extent. Bitcoin's independence is one of the cardinal reasons for it's growing trust rating.

[Smack That Ace]

Many are worried that when Tesla sells bitcoin, it will have a red market impact, but the facts prove that the market looks normal and even rises, with this fact will make Elon Musk and anyone who buys bitcoin that they think with large amounts but the Bitcoin community is bigger and not Panic and many are happy because they can buy Bitcoin at low prices.

No, it did have an effect on the market, but it was only of a short-term nature, and the market soon ignored this information in order to continue going up.

Remember in the past, when China announced a ban on all bitcoin-related activities and the market was also affected at that time. But as always, bitcoin ignores it and continues to grow even stronger. Bitcoin has proven it does not need and is not afraid of any force.

[Jaksjol675]

Tesla's $1.5 billion bitcoin bet from early this year had already increased in value by more than $1 billion by the end of last month.

The company disclosed in February that it used some of its available cash to invest $1.5 billion in bitcoin. Tesla on Monday reported a record quarterly profit, disclosing it had sold 10% of its bitcoin stake, netting a $101 million profit on those sales.

Tesla provided more details about its cryptocurrency holdings in a regulatory filing Wednesday, disclosing that it made a $128 million profit on some bitcoin sales, but recorded a $27 million loss on some of its other sales of the volatile digital asset.

[JayJuanGee]

Tesla's $1.5 billion bitcoin bet from early this year had already increased in value by more than $1 billion by the end of last month.

The company disclosed in February that it used some of its available cash to invest $1.5 billion in bitcoin. Tesla on Monday reported a record quarterly profit, disclosing it had sold 10% of its bitcoin stake, netting a $101 million profit on those sales.

Tesla provided more details about its cryptocurrency holdings in a regulatory filing Wednesday, disclosing that it made a $128 million profit on some bitcoin sales, but recorded a $27 million loss on some of its other sales of the volatile digital asset.

I doubt that Tesla had much of a long term vision and/or investment plan regarding bitcoin... so they would likely need to be a bit more strategic and deliberate in their approach to BTC rather than playing around like they don't know what the fuck they are doing.. which seems to be a strange thing when dealing with $1.5 billion dollars, and a public company too.

[Die_empty]

Tesla's $1.5 billion bitcoin bet from early this year had already increased in value by more than $1 billion by the end of last month.

The company disclosed in February that it used some of its available cash to invest $1.5 billion in bitcoin. Tesla on Monday reported a record quarterly profit, disclosing it had sold 10% of its bitcoin stake, netting a $101 million profit on those sales.

Tesla provided more details about its cryptocurrency holdings in a regulatory filing Wednesday, disclosing that it made a $128 million profit on some bitcoin sales, but recorded a $27 million loss on some of its other sales of the volatile digital asset.

I doubt that Tesla had much of a long term vision and/or investment plan regarding bitcoin... so they would likely need to be a bit more strategic and deliberate in their approach to BTC rather than playing around like they don't know what the fuck they are doing.. which seems to be a strange thing when dealing with $1.5 billion dollars, and a public company too.

Telsa is investing in Bitcoin solely for profit making. The company has little or no regards about the effects of their actions or inactions on the price of Bitcoin. The company seems selfish, only considering it's on goals and objectives. I would not be surprised if the firm still sells more of it's Bitcoin because even Elon Musk current disposition doesn't seem that he is true believer of Bitcoin, maybe he invested because he was convinced by Michael Sawyer.

[fillippone]

An analyst computed the impact of Bitcoin Price on Tesla accounts.

Tesla May Take $460M Impairment Charge on Its Bitcoin Holdings for Q2, Analyst Says

The cryptocurrency's price fell significantly during the Tesla, the electric car maker led by crypto proponent Elon Musk, may take a $460 million impairment charge on its sizable bitcoin holdings for the second quarter, according to a note from Barclays analyst Brian Johnson. The company is scheduled to report after the stock market closes on Wednesday.

One detail caught my attention

• With bitcoin ending the second quarter at $18,731, Johnson, who is bearish on Tesla, expects the company to take a noncash, impairment charge on its total holdings of about $460 million, or roughly 40 cents a share.

I am not sure the impairment shall be calculated using the closing price of the Bitcoin. The impairment should be instead calculated using the lower intraday price recorded during the quarter. This is at least consistent with the practice used by Microstrategy.
The difference is not huge, as the lowest price during the quarter is 18,153 as opposed to 18,731, so the impact should be negligible.

[The Sceptical Chymist]

I recall they sold a small percentage of their BTC holding in offer to see if the market was liquidd enough to absorb these coins without the price moving too much.

That's sort of what I heard as well--but that story doesn't really ring true in my ears, mainly because I've never heard of a company selling an asset just to see if (or prove that) the market for that asset is liquid.  Since this is Elon Musk we're talking about, I'm assuming there was some other reason that's not being made clear.  If it was Micheal Saylor or a CEO of some other reputable company, I'd still be skeptical, but with Musk?  Yeah, I'm not buying it.

It doesn't matter how much doge or btc he buys or sells; he knows he can move any crypto market with just a tweet--and that's a sad state of affairs IMO.

[fillippone]

I Expanded what I did for Microstrategy, also for Tesla.

I must have done something horribly wrong if the result is the following one:



This means that Tesla won't have any impairment, as the last sell occurredin the last quarter, and the price has risen since then.
But fillippone is really tired and struggling tonight.
I will check also the original paper tomorrow.

[Shaha98]

Many speculated that when Elonmusk held Bitcoin, the price would rise. But when Bitcoin sells again, the Bitcoin market will turn into a red spot. But true, Misconceptions because Bitcoin is based on a much larger idea. But still after selling the market did not decrease. Rather it was active Even though Elonmusk sold in hopes of a lower price, the Bitcoin market did not go down and the Bitcoin community remained steadfast.

[Crypto Legend]

Many speculated that when Elonmusk held Bitcoin, the price would rise. But when Bitcoin sells again, the Bitcoin market will turn into a red spot. But true, Misconceptions because Bitcoin is based on a much larger idea. But still after selling the market did not decrease. Rather it was active Even though Elonmusk sold in hopes of a lower price, the Bitcoin market did not go down and the Bitcoin community remained steadfast.

This is because people think that Elon Musk has a broad influence on the market, the fact is not the case, when they sell all stocks then everything is normal, this proves that the market is not too concerned with Elon Musk.

[fillippone]

I tuned up my spreadsheet with all the Tesla reporting from their financial statements from the SEC website.

While I am pretty accurate with Microstrstegy, I am not so precise with Tesla.
It might be due to different details account they didn’t disclose.

I am summing up and I will later post something about this.

[fillippone]

Just updating this thread to underline that Tesla still hodls Bitcoin.

Tesla Made No Changes to Bitcoin Holdings in First Quarter

Electric car maker Tesla (TSLA) did not buy or sell any bitcoin in the first quarter of 2023, the company reported in its earnings release Wednesday afternoon.

Tesla reports 184 million of digital assets on their balance sheet, flat from previous quarter.
According to this thread, and to bitcointreasuries.com, Tesla hodls 9,720 BTC with a market valuation of about 288 Mios.

[siniminomorocomunisakito]

In my opinion, Tesla's decision to invest $1.5 billion in February 2021 in the world's most popular cryptocurrency showed the world that digital currencies are nothing new and one thing is certain for now, Bitcoin is now in the spotlight.