Tesla make 1 billion profits from it Bitcoin holding

[BIN-BIN]

As Bitcoin price relies on around $58,000 investors are already recording their profits and one among them is Tesla, a company own and operated by Elon Musk a popular cryptocurrency whale. The company bought 43,200 Bitcoins sometime in February 2021 have yielded a 65% that is 1 billion dollars profits at the present Bitcoin price.
Credit: https://cointelegraph.com/news/elon-musk-s-tesla-is-already-1-billion-in-profit-from-holding-bitcoin

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[Lucius]

If Tesla (EM) did not sell all that BTC, then it would be more accurate to say that it is an unrealized profit - and EM has stated that it has no intention of selling that BTC, although this may change at any time. In addition, Tesla appears to have bought a total of 46 000 BTC at an average price of $32 610, but sold 10%, so the total amount of BTC is now 41 400  currently worth 2.375 billion.

In Q4 of last year, Musk purchased $1.5 billion in Bitcoin in one of the most adventurous moves ever undertaken by a corporate treasury. CFO Zach Kirkhorn praised the gambit as "a good place to place some of our cash that's not being used, and get a good return on that." By my math, Tesla bought 46,000 coins at an average price of $32,610. In mid-March, it sold 10% of its holdings, around 4,100 coins, at an average price of almost $60,000, booking a profit of $128 million (reduced to $101 million by an "impairment" charge).

[mk4]

If Tesla (EM) did not sell all that BTC, then it would be more accurate to say that it is an unrealized profit - and EM has stated that it has no intention of selling that BTC, although this may change at any time.

This lol. Technically, it really isn't considered as "profits" if the assets haven't been sold yet in the first place. It's quite misleading, but I guess Cointelegraph's goal was to make it misleading enough to trick people into talking about it, and here we are. 🤷‍♂️

[DaveF]

The flip side is what the opportunity cost of having that money tied up in BTC, or any other place for that matter.

Could having extra cash on hand been better spent making sure that the cybertruck is not delayed (as it is now)
Or having more engineers & designers to get the replacement for the Model S which is 9 1/2 years old at this point which puts it way behind other cars.
And so on.

Not saying them having the BTC is bad, just that when you look at the potential $1 Billion in profit how much did they loose from having it tied up there.
They are a car / technology company not an investment company.

-Dave

[bekti3]

i read the article linked by the OP and i got dizzy with the explanation of the article.
and in this news I don't think it will affect bitcoin even if they for or lose I don't really care about the company.
and I don't think it has any effect for bitcoin because they are still holding the coin it will be a different story when they make a return.

[DarkDays]

In addition, Tesla appears to have bought a total of 46 000 BTC at an average price of $32 610, but sold 10%, so the total amount of BTC is now 41 400  currently worth 2.375 billion.

This is an example of the level of potential profit one can make if he/she invests for the long term and with a large amount of money.

Yes, you may lose out on the opportunity cost (i.e. that something else you could have put that money into) but the risk is proportional to the reward.

So, the fact that $1B is the profit made so far shows that the risk taken would have been payed off if the coins were to be sold at today's price.

Is is also an example of the level of market power some people can have...

[DdmrDdmr]

Tesla's last two SEC filed quarterly reports were filed on a 27th, so perhaps the coming report will be available in a couple of weeks, where we’ll be able to see the formal data on their current bitcoin tenancy.

Incidently, Tesla celebrated it’s Annual Meeting a week ago, and although I’m not aware if bitcoin was mentioned in any way, there are 61 unanswered questions on their site related to bitcoin (see https://app.saytechnologies.com/tesla-2021-annual-meeting?filter=all&search=bitcoin&sort=num_shares), due to not being in the top questions represented by the shares of the voters.

[NeuroticFish]

that is 1 billion dollars profits at the present Bitcoin price.

That's only on the paper. As people said, unrealized profit.
1 BTC = 1 BTC. As long as they don't sell, there's no actual profit to talk about.
Nice bullish (for newbies) news though

[Imran232]

............

Yes sir you are right. Now tesla has a little power in market to control the price. If Tesla holds the BTC, then this news creates more hype in the market. More hype means more companies and people coming to invest, and all because the bitcoin price will increase more. But though Elon Mask had a bad habit of creating fud tweets like what he had done previously, when the price was high, they created some useless tweets about bitcoin, and the market got crushed. Even if he creates any selling tweets right now, it might be another down sign. But I hope Elon won't do it again. He can say that he or Tesla will sell 5-20% of their holdings for the money to invest in their company. You don't need to say any useless words like "nature damage" or "something." Then proce might be stable. This is what I am thinking. But this is also a lesson that holders always win. 

[tulusikhlas]

............

Yes sir you are right. Now tesla has a little power in market to control the price. If Tesla holds the BTC, then this news creates more hype in the market. More hype means more companies and people coming to invest, and all because the bitcoin price will increase more. But though Elon Mask had a bad habit of creating fud tweets like what he had done previously, when the price was high, they created some useless tweets about bitcoin, and the market got crushed. Even if he creates any selling tweets right now, it might be another down sign. But I hope Elon won't do it again. He can say that he or Tesla will sell 5-20% of their holdings for the money to invest in their company. You don't need to say any useless words like "nature damage" or "something." Then proce might be stable. This is what I am thinking. But this is also a lesson that holders always win. 

Or maybe Elon has no intention of dropping the price, what makes it go down is that his followers are crazy about the secrets behind the tweets, giving rise to mixed speculation. Doesn't that make quite a bit of sense when a large and loyal following of what is being tweeted has a different frequency of thought as well as some misunderstanding the flow of what Elon is referring to.

I do not side with anyone when there is no definite clarity if Elon himself does not reveal it clearly in public. Except for the meme coin which is clear, we don't need to reveal it anymore.
Let's just take the logic, with loyal followers always give birth to many different assumptions including followers of even big investors.

[BIN-BIN]

i read the article linked by the OP and i got dizzy with the explanation of the article.
and in this news I don't think it will affect bitcoin even if they for or lose I don't care about the company.
and I don't think it has any effect on bitcoin because they are still holding the coin it will be a different story when they make a return.

43,200 BTC is enough to affect the market but on a short-term basis, and tesla was one of the first companies that publicly adopt Bitcoin and also buying a big amount of Bitcoin which is the center of the topic.

[eaLiTy]

As Bitcoin price relies on around $58,000 investors are already recording their profits and one among them is Tesla, a company own and operated by Elon Musk a popular cryptocurrency whale. The company bought 43,200 Bitcoins sometime in February 2021 have yielded a 65% that is 1 billion dollars profits at the present Bitcoin price.

Every investor is here in the market to make a huge profit and Tesla already booked their profit a while back and i am sure they recovered the capital they invested and who knows when they will be booking the rest of the profit. What we need to understand is that there are multiple institutional investors in the market and when they will be booking their profit is unknown and once they do the market will turn upside down.

[Cookdata]

that is 1 billion dollars profits at the present Bitcoin price.

That's only on the paper. As people said, unrealized profit.
1 BTC = 1 BTC. As long as they don't sell, there's no actual profit to talk about.
Nice bullish (for newbies) news though

If Elon decides to drop his bags today, the market will suffer a massive tragedy, perhaps even greater than the last Covid 19 dump.
The future of bitcoin is something to keep an eye on, especially now that Elon Musk leads the pack of billionaire wolves.

[Raflesia]

that is 1 billion dollars profits at the present Bitcoin price.

That's only on the paper. As people said, unrealized profit.
1 BTC = 1 BTC. As long as they don't sell, there's no actual profit to talk about.
Nice bullish (for newbies) news though

They will think it will be sold, of course not and will still be hold by Tesla.
Sometimes they misjudge the title with profit, the fact is that it is only an estimate now if it is sold at a price of $58k, it is clear that Tesla will get a big profit, but this can make FUD news because maybe some if you don't understand the content of the article, they will continue to sell it all even though the reality is no.

There is no profit if it is not sold, and I think Tesla will still hold it in the long term.

[Ryker1]

that is 1 billion dollars profits at the present Bitcoin price.

That's only on the paper. As people said, unrealized profit.
1 BTC = 1 BTC. As long as they don't sell, there's no actual profit to talk about.
Nice bullish (for newbies) news though

If Elon decides to drop his bags today, the market will suffer a massive tragedy, perhaps even greater than the last Covid 19 dump.
The future of bitcoin is something to keep an eye on, especially now that Elon Musk leads the pack of billionaire wolves.

Well a small portion but in fact, --it will not.
The reason is when the price drop and there is someone dropping their bags, other holders will also grab the opportunity to accumulate bitcoin and it could happen the bitcoin price will bounce back again. But I don't think Elon Musk will cut their profit at this early stage, perhaps they are long-term holders and want to gain more profit. For now, there is no real profit because they are not selling, --it is unrealized profit, ideed.

[Questat]

As Bitcoin price relies on around $58,000 investors are already recording their profits and one among them is Tesla, a company own and operated by Elon Musk a popular cryptocurrency whale. The company bought 43,200 Bitcoins sometime in February 2021 have yielded a 65% that is 1 billion dollars profits at the present Bitcoin price.
Credit: https://cointelegraph.com/news/elon-musk-s-tesla-is-already-1-billion-in-profit-from-holding-bitcoin

Bought at $43,200 to the current price $58k, that is really in big profit supposedly but somehow they just hold it which is just turn a dream. As Tesla company doesn't have a plan to sell their Bitcoins, there is no such thing as PROFIT.
Well, that Cointelegraph is doing something to divert the mind of the people, they wanted to encourage people to buy Bitcoin and be like Tesla who assumes to have in huge profit by simply just holding which is not in real life.

[hatshepsut93]

If Tesla (EM) did not sell all that BTC, then it would be more accurate to say that it is an unrealized profit - and EM has stated that it has no intention of selling that BTC, although this may change at any time. In addition, Tesla appears to have bought a total of 46 000 BTC at an average price of $32 610, but sold 10%, so the total amount of BTC is now 41 400  currently worth 2.375 billion.

This was my first thought too, but journalists like to count someone's unrealized gains and losses, titles like "billionaires made trillions in last year" actually mean the same thing as in this article. And I think in this case it's a positive thing, because people who will hear that Elon Musk made a billion from Bitcoin could get interested and eventually buy their first coins too.

[Mahanton]

If Tesla (EM) did not sell all that BTC, then it would be more accurate to say that it is an unrealized profit - and EM has stated that it has no intention of selling that BTC, although this may change at any time.

This lol. Technically, it really isn't considered as "profits" if the assets haven't been sold yet in the first place. It's quite misleading, but I guess Cointelegraph's goal was to make it misleading enough to trick people into talking about it, and here we are. 🤷‍♂️

Just as expected on where publishing up news which is somewhat misleading because it was never been considered to be profits and just like on what others been saying that as long it wasnt sold or converted then those
are just unrealized profits or still have the tendency to be reduced or wont really be that accurate unless if  they would decide to convert then thats the exact moment we could say that they had earned that much.
On the other hand in talkings about this matter then this is something one of the benefits when you do invest on bitcoin and tesla had trusted bitcoin when it was still on 32k+ in price and now the price
had risen up then this is one of the benefits that they had get.

[24Kt]

If Tesla (EM) did not sell all that BTC, then it would be more accurate to say that it is an unrealized profit - and EM has stated that it has no intention of selling that BTC, although this may change at any time.

This lol. Technically, it really isn't considered as "profits" if the assets haven't been sold yet in the first place. It's quite misleading, but I guess Cointelegraph's goal was to make it misleading enough to trick people into talking about it, and here we are. 🤷‍♂️

Just as expected on where publishing up news which is somewhat misleading because it was never been considered to be profits and just like on what others been saying that as long it wasnt sold or converted then those
are just unrealized profits or still have the tendency to be reduced or wont really be that accurate unless if  they would decide to convert then thats the exact moment we could say that they had earned that much.
On the other hand in talkings about this matter then this is something one of the benefits when you do invest on bitcoin and tesla had trusted bitcoin when it was still on 32k+ in price and now the price
had risen up then this is one of the benefits that they had get.

I can agree that we can't call this as profits as they haven't sold it yet. So the news is just highlighting the possible scenario if in case Tesla will sell their bitcoin holdings. But this news is giving false hope to some new users that bitcoin can indeed give them high profits. However, they should know that it still depends on their strategy how they can get the same possible fate in this market.

[oktana]

that is 1 billion dollars profits at the present Bitcoin price.

That's only on the paper. As people said, unrealized profit.
1 BTC = 1 BTC. As long as they don't sell, there's no actual profit to talk about.
Nice bullish (for newbies) news though

Well, if you turned the table round, I think you'll see it as a profit either way. If they choose to sell, they'll make out their cash and wait for the next bearish season so they'll increase what they bag. That's a profit, except that they said they won't be selling any of their holdings which we cannot vouch for.