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Tesla Sold Bitcoin in Q1 for Proceeds of $272M

Tesla CEO Elon Musk(Heisenberg Media/Wikimedia Commons)

Nate DiCamillo

Tesla Sold Bitcoin in Q1 for Proceeds of $272M

Tesla sold some of its bitcoin (BTC, +11%) stash in the first quarter for $272 million in proceeds.

The sale trimmed Tesla’s position by 10%, Tesla CFO Zach Kirkhorn said on an earnings call Monday.

In the slide deck accompanying the company’s first-quarter earnings results Monday, Tesla mentioned the sale of some bitcoin:

“Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in ‘Restructuring & Other’ line) were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items. Model S and Model X changeover costs negatively impacted both gross profit as well as R&D expenses.”

Elon Musk’s electric vehicle company reportedly purchased $1.5 billion worth of bitcoin in February.

An image from Tesla’s Q1 2021 earnings deck.

Kirkhorn said on the call that Tesla invested in bitcoin to earn yield on its excess cash in a low-interest-rate environment.

While the company continues to deal with global supply chain crunches like semiconductor shortages or ship port capacity, he said the bitcoin market is a liquid market with an optimistic future. Telsa will continue to accumulate bitcoin through customer transactions and will make future bitcoin-related announcements in the future, Kirkhorn added.

UPDATE (April 26, 22:20 UTC): Adds comments from Tesla CFO Zach Kirkhorn.

 

 

Read on coindesk.com

2021-04-27T02:28:36+03:00April 27th, 2021|Categories: News|Tags: , , , , , , |0 Comments

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