Tesla, the prominent electric vehicle company, did not make any purchases or sales of Bitcoin during Q1 2023.
It had last conducted a transaction in Q2 2022, where the company sold 75% of its Bitcoin holdings to offset escalating production costs.
No Activity in Q1
During Q1, the Elon Musk-led enterprise publicly declared that it had not touched its Bitcoin assets, worth approximately $345 million that equates to 11,950 BTC. This marks the third successive quarter that Tesla has not made any purchases or sales of Bitcoin.
Tesla’s most significant crypto exchange occurred in Q2 2022, which saw the sales of approximately $936 million worth of BTC, 75% of its overall holdings. Musk stated that this move was essential to combat Tesla’s surging production costs following lockdowns in China during the ongoing pandemic. He claimed that the sale of Bitcoin generated almost $1 billion, assisting the company in mitigating unanticipated expenses.
Contrary to the company’s stance, Musk verified that he has not sold his digital assets that include Ethereum (ETH) and Dogecoin (DOGE). Musk stated that the meme coin was a more appropriate digital asset compared to BTC and suitable for transactions and settlements.
Tesla and Bitcoin
Tesla has been deeply involved in the cryptocurrency space since early 2021, making its first purchase of BTC worth $1.5 billion. The move culminated in a surge in the BTC value to an all-time high exceeding $42,000. Later, Tesla provided another boost to BTC’s price by allowing customers to buy its vehicles in Bitcoin instead of fiat currency.
The collaboration between Tesla and Bitcoin ended in May 2021 when Tesla suspended the payment method, citing the high energy consumption of Bitcoin’s network. BTC prices fell from $55,000 to 52,000 in a matter of minutes after this revelation. Musk explained that his company would bring back the payment option when evidence points to 50% of Bitcoin mining being powered by renewable energy.
Recent reports suggest that this target has already been achieved, with over 52% of energy coming from renewable sources.