Despite selling some Bitcoin (BTC) to prove liquidity, electric car company Tesla has increased the value of the cryptocurrency it is holding.

In its quarterly filing, the Elon Musk-owned company disclosed it now has $2.48 billion worth of Bitcoin, a significant increase from its initial investment of $1.5 billion.

It can be recalled that the company has decided to accept digital currency as payment for sales of certain products in specific regions subject to applicable laws. In March, in a stunning development, Tesla sold some of its Bitcoins. But even after that, it still ended up having a bigger worth of BTC in its hands.

Officially from Tesla

In its filing, after accounting for the sale of some Bitcoin that fetched a value of $272 million, Tesla has reported that as of March 31, 2021, the value of their Bitcoin held was $1.33 billion. The fair market value of BTC it held as of March 31, 2021, was $2.48 billion.

The price of the cryptocurrency back on the mentioned date was around $59K, but it has since fallen slightly in a slump that happened last April.

As of press time, the BTC price stands at $54,900. That makes Tesla’s Bitcoin holdings valued at roughly $2.31 billion.

Holding on to Bitcoin for the long run

Tesla might have made the decision to sell some of its Bitcoin, but its Chief Executive Officer Elon Musk has already insisted that he hasn’t sold any of his cryptos. He then explained that Tesla made a move to sell 10% of its holdings to prove the liquidity of the digital currency as an alternative to holding cash on their balance sheet.

Meanwhile, Tesla Chief Financial Officer Zachary Kirkhorn assured that they are committed to holding BTC for the long term.

According to him, they believe in the value of Bitcoin, so it is their intention to hold what they have long term and “accumulate Bitcoin from transactions from our customers as they purchase vehicles.”

 

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/blockchain/teslas-bitcoin-stash-now-worth-almost-2-5-billion/