Elon Musk's Diamond Hands Turn Shattered Crystal: How Much Bitcoin Does Tesla Have Left?

Zinger Key Points
  • Tesla announced a $1.5-billion purchase of Bitcoin in the first quarter of 2021.
  • Tesla has now sold the majority of its holdings of the leading cryptocurrency.

In February 2021, Tesla Inc TSLA made headlines around the world with the report of its purchase of $1.5 billion in Bitcoin BTC/USD. Tesla was one of the largest companies to put Bitcoin on its balance sheet, a purchase that as of Wednesday has now been substantially reduced. 

What Happened: Tesla purchased $1.5 billion in Bitcoin in January 2021.

Tesla CEO Elon Musk tweeted in May 2021, implying the company had diamond hands, a reference to people who hold onto an asset even if it loses value. 

Two sales of the cryptocurrency by Tesla might lead to some calling out Musk's original tweet. 

In the first quarter of 2021, Tesla sold $272 million of the cryptocurrency and said it had a “positive impact” of $101 million on the company’s profitability.

Tesla ended the first quarter of 2022 with $1.26 billion of Bitcoin on its balance sheet. With a declining price of Bitcoin in the second quarter, many saw Tesla taking an impairment charge for the value; instead, Tesla surprised investors with an update Wednesday. 

Tesla converted around 75% of its Bitcoin to fiat currency in the second quarter.

“Conversions in Q2 added $936 million of cash to our balance sheet,” the company said.

Related Link: Tesla Q2 Earnings Highlights: Revenue Miss, EPS Beat, Bitcoin Converted To Fiat, 'Record Breaking' Second Half Predicted 

How Much Bitcoin Does Tesla Have? Tesla’s financial statements show a total of $218 million in “digital assets” on the balance sheet.

The second quarter ended on June 30, 2022. Bitcoin traded in a range of $18,729.66 to $20,141.16 on June 30. While it is unknown what day Tesla listed its value of Bitcoin, an estimate can be made based on the trading range on June 30.

Tesla’s $218 million value of Bitcoin would equate to 10,823.61 BTC to 11,639.29 BTC based on the June 30 trading range.

Based on a trading range of $29,333 and $37,020 in the month of January 2021, it is believed that Tesla originally purchased between 37,020 and 51,137 Bitcoin.

Tesla was one of the largest companies to put Bitcoin on its balance sheet with its $1.5-billion purchase. After two sales, the electric vehicle company now owns less than $250 million in the leading cryptocurrency.

TSLA, BTC Price Action: Tesla shares are up 0.4% to $754.50.

Bitcoin is up 0.3% to $23,315.34 after falling immediately in the wake of the Tesla earnings report.

Posted In: CryptocurrencyNewsTop StoriesAfter-Hours CenterMarketsBitcoinDiamond Handselectric vehiclesElon Musk
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