The electric vehicle giant Tesla did not buy or sell any BTC during the first quarter of 2023.

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The company’s last transaction was in Q2, 2022, when it sold 75% of its BTC holdings to cope with rising production costs as interest rate was going up and banks are not willing to part with most of their funds as they where facing bank runs by most of their customers then hence couldn't process large loans.

No Changes in Q1 as the EV manufacturer, led by Elon Musk, announced it had kept its Bitcoin possessions untouched during the first three months of the year. The company continues to hold 11,950 BTC, equivalent to approximately $345 million at current price.

This is the third consecutive quarter where Tesla has not sold or bought any BTC as company's director has Been more focus on developing other business. Its latest major transaction in the crypto scene occurred in Q2, 2022, when it parted with $936 million worth of the leading digital asset (75% of its total stash) which plummeted the cryptocurrency market then.

Elon Musk explained that the move was vital due to Tesla’s record production costs in China which spiked to unseen levels due to another COVID-19 lockdown that hampered the local economy. He said the nearly $1 billion generated from the sale helped the company meet its unpredicted expenses as funds where not secured from any banking agency and the urgency of the situation warrants the sell off to meet companies requirement since it was an investment that is already profitable.

Contrary to his firm’s choice, Elon Musk assured he had not sold his personal crypto holdings as he is a long term holder and also bullish on bitcoin and Doge in the long run. Apart from Bitcoin, he has invested in Ethereum (ETH) and Dogecoin (DOGE). The memecoin is actually his favorite digital asset, arguing it is better suited for transactions and settlements than BTC, which he sees as a store of value.

Tesla and Bitcoin

They has been deeply involved with the industry since the beginning of 2021, when it bought a whopping $1.5 billion worth of BTC. The purchase added momentum to an already heated bull market, pushing the asset’s valuation to a new all-time high above $42,000.

Tesla doubled down a few months later increasing their holdings by , allowing customers to buy company vehicles in BTC instead of fiat currency, triggering another price increase as most cryptocurrency OG had to try the new payment gateway out to check if they where actually accepting.

The honeymoon between the two ended in May 2021 when Tesla suspended the payment method, citing the high energy consumption of the network and a for saw of the bear market dinging at the financial market with some much FUD and political policies to keep the company running . BTC tumbled from $55K to $52K in a matter of minutes after the disclosure, hence the cryptocurrency bear market started full fledged.

Elon, on the other hand, said his company could bring back the option once there’s evidence that at least 50% of Bitcoin mining is powered by renewable energy, A recent research estimated the process has already moved in that direction, with over 52% of the energy coming from renewable sources, but the market still looks bearish in their own opinion waiting for the buy signal before they can dive back into the market.

Reference

https://cryptopotato.com/tesla-didnt-sell-btc-during-q1-of-2023/

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