In a filing with the US Securities and Exchange Commission (SEC), Tesla, the electric vehicle manufacturer owned by Elon Musk, explained the Bitcoin liquidity use case and pointed out its long-term potential.
With all this, the statements came to place in one section of the information. In which Tesla reported earnings of $ 1,260 million for its cryptocurrencies, for this first quarter of 2022.
In sum, cryptocurrencies have been volatile in the past and in the present, according to the company’s report. At the same time, because they depend on technology for their production, validation and continuous existence, cryptocurrencies are also vulnerable to vicious attacks. Tesla also said that, if fair values fall, they would have to record impairment costs.
However, Tesla stated that in the first quarter of 2022 they have had no losses on their holdings in Bitcoin. Despite the falling price of the cryptocurrency.
Tesla confirms to the SEC that it still believes in the potential of Bitcoin
«We believe in the long-term potential of Bitcoin as an investment. And also as a liquid alternative to cash».
Indeed, in one of its filings with the SEC, Tesla has said that it believes in the long-term potential of cryptocurrencies. Remembering, that the company made its big debut in the world of cryptocurrencies using Bitcoin.
«As with any investment and consistent with the way we manage fiat currency based cash and cash equivalent accounts. We can increase or decrease our cryptocurrency holdings at any time, depending on business needs, our market view and environmental conditions».
By the way, according to reports, Tesla has neither bought nor sold Bitcoin in the last four quarters.
In fact, in February 2021, Tesla claimed that it acquired $1,5 billion in Bitcoin. However, there was no movement until the firm had to record a loss of $51 million to show the reduction in the price of Bitcoin in the third quarter.
Now, within that presentation, Tesla provided information. Explaining how the investment “it would give us more flexibility to further diversify and maximize returns on our cash, which is not required to maintain adequate operating liquidity».
- April 26, 2021. Elon Musk took to Twitter, to defend Tesla’s decision to sell 10% of its Bitcoin holdings during the second quarter of 2021.
- June 13, 2021. Elon Musk claimed that Bitcoin needed to use more clean energy. Thus eliminating the option of receiving Bitcoin as a means of payment.
- October 14, 2021. Tesla was reported to have raised over a billion dollars on its initial Bitcoin investment.
- April 8, 2022. Tesla announced a partnership with BlockStream and Block. Indicating, that Tesla’s power equipment would be tapped for a $12 million Bitcoin mining facility.
Finally, Tesla is positioned as the second company with the most funds in Bitcoin, after MicroStrategy. It is indicated that Tesla has 42,902 BTC now.
I take my leave with this quote from Michael Saylor: “No one in the world can stop talking about Bitcoin».