We do the research, you get the alpha!
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
$63,499.00
-0.50%$3,117.01
-1.14%$6.81
-1.39%$598.97
-1.95%$143.08
-2.74%$1.00
-0.01%$3,117.46
-1.04%$0.519844
-0.76%$0.147953
-1.91%$5.35
-0.66%$0.466444
-1.12%$0.00002517
-1.21%$35.19
-0.95%$0.119207
2.27%$63,630.00
-0.42%$481.03
0.99%$14.62
-0.08%$7.01
-1.55%$0.706132
-1.23%$86.89
3.99%$13.32
-3.53%$7.60
-5.45%$5.82
1.25%$1.00
0.07%$27.10
3.12%$0.111003
-7.68%$2.65
-2.35%$8.88
-2.29%$1.10
-2.62%$0.127712
1.50%$0.113291
-0.13%$6.01
-0.10%$8.24
-1.27%$8.24
-3.50%$52.52
-0.97%$0.00000748
-4.95%$3,065.64
0.29%$2.03
-3.28%$2.94
-2.87%$2.93
-3.79%$437.57
-4.86%$0.03929131
-1.21%$1.07
-2.56%$0.118674
-0.25%$2,860.71
-0.36%$3,224.41
-0.72%$0.259682
-3.52%$2.33
-4.03%$2.43
1.06%$0.998598
0.06%$25.82
-2.38%$2.21
-4.76%$121.27
1.96%$31.77
0.94%$0.733401
-1.41%$2.23
-5.78%$10.44
-3.04%$5.36
-2.72%$3,442.18
-1.13%$0.00018262
-3.63%$1.97
-2.74%$0.00002572
-3.94%$0.593381
-5.99%$1.18
-0.22%$0.04640675
-3.03%$0.1978
-2.71%$107.27
-1.50%$1.18
-4.12%$3,219.83
-0.21%$9.92
0.79%$0.02706452
-4.22%$0.02768103
2.36%$0.915904
-1.10%$1.014
-3.56%$90.11
-0.51%$18.62
4.70%$65.77
-1.30%$0.00000133
4.89%$3,113.23
-0.41%$0.03090693
1.60%$0.827704
-6.25%$0.897315
-5.39%$42.52
0.89%$0.786484
-6.03%$4.61
-2.53%$2.16
-4.87%$0.591886
-8.17%$2.48
21.18%$0.117714
-0.39%$7.26
-1.56%$1.081
0.43%$0.456561
-0.97%$0.00005219
1.53%$7.64
2.84%$12.47
-3.10%$1.009
-0.62%$10.09
0.82%$2.91
0.25%$0.241448
-7.03%$0.81492
-5.76%$16.09
-0.40%$4.70
-5.92%$0.838261
-2.49%$2.86
-7.65%$42.60
-2.14%$0.01829607
-3.47%$0.589026
-3.84%$169.14
-2.65%$1.17
-1.84%$327.33
-1.56%$0.453912
-2.20%$1.31
3.37%$3,089.50
-0.58%$0.117371
0.61%$0.706076
-1.65%$0.0173359
-2.25%$0.23285
-1.84%$4.35
20.92%$0.984528
0.16%$12.46
-7.37%$2.74
-2.58%$0.637289
-3.83%$0.190536
-2.69%$1.22
-1.43%$17.96
5.21%$1.051
-6.46%$3,283.32
-1.24%$2.16
-4.94%$0.099396
-1.98%$168.59
-2.58%$0.998095
0.09%$0.00010923
3.14%$3,109.21
-0.40%$0.382781
-0.01%$0.00000029
-3.71%$95.64
-2.50%$0.921532
-1.99%$3.62
0.04%$1.68
-2.32%$0.384312
-4.21%$1.41
-1.29%$34.08
-1.09%$1.90
1.42%$0.104824
-2.55%$0.311389
-2.66%$2,339.56
0.36%$0.01040372
-4.94%$3,322.54
-0.94%$0.060161
-3.31%$0.00164025
-1.69%$0.697022
0.21%$0.918567
-5.12%$0.03970351
1.00%$0.051413
-0.22%$5.54
-8.26%$0.437531
-0.42%$0.375685
-3.60%$1.001
-0.02%$0.051108
-2.70%$0.508563
35.33%$0.43264
0.21%$3,370.20
-1.23%$0.00555778
-8.38%$4.98
-1.12%$0.00000049
0.28%$0.330498
-1.56%$0.02862105
-3.42%$0.245355
-0.67%$0.09025
-4.34%$14.49
-6.39%$0.02529676
-1.48%$0.03276322
-0.59%$14.47
-1.96%$4.28
-0.13%$0.00252008
-2.06%$2.11
-3.36%$1.064
-1.47%$1.76
-4.50%$0.819811
-1.51%$0.630182
0.19%$0.596411
-2.27%$2,336.86
0.32%$0.509891
-1.43%$21.07
-4.06%$0.941895
-3.31%$1.61
-0.50%$4.00
-0.50%$0.00736886
-4.18%$0.400323
-2.69%$3.89
1.20%$0.0073749
-2.25%$3.49
-4.89%$0.04675616
-14.68%$0.838127
-0.14%$3.20
-0.93%$0.257549
-0.83%$3,196.05
-0.91%$0.384278
-0.82%$55.53
-0.89%$0.931976
-0.29%$62.62
-1.38%$0.0311827
0.00%$0.536334
-15.42%$0.484315
-4.19%$0.131812
4.68%$30.15
-1.04%$5.42
1.46%$4.44
-2.03%$62.16
-4.11%$0.02752984
0.44%$0.383516
-5.09%$23.10
-0.81%$3.70
-4.16%$0.03762464
-3.47%$21.11
-5.74%$0.438318
-4.46%$0.681812
-2.47%$1,274.77
-0.23%$0.03373877
1.08%$0.03445222
-1.05%$3.44
-1.62%$0.929145
-1.46%$0.25779
-2.74%$0.880888
-5.05%$45.04
-2.10%$0.736321
-2.64%$7.92
-0.73%$30.15
-2.10%$0.00611004
-3.41%$0.998785
0.03%$0.00
-2.16%$2.05
1.43%$27.03
-0.74%$1.18
-10.97%$2.40
-3.08%$0.316399
-2.17%$3,262.03
-0.62%$64.83
0.09%$40.08
-1.35%$29.25
-2.37%$0.0034716
-3.17%$0.261532
1.65%$3.12
-5.36%$0.316288
-3.24%$0.02081674
-1.15%$1.75
-4.73%$0.289701
-3.05%$0.150528
-5.17%Tesla sold 75% of its Bitcoin, worth approximately $936 million, according to its Q2 earnings report.
In its after-market earnings announcement, the electric car manufacturer founded by Elon Musk said in a shareholder presentation that “Bitcoin impairment” had a negative impact on its profitability during the second quarter, when it posted $2.5 billion in operating income.
The crypto market immediately reacted to the news.
Bitcoin (BTC), which made it above $24,000 on Wednesday, dropped sharply right after markets closed at 4 p.m. Eastern Time. It was trading at $23,078.18 at the time of writing, down 2.5% in the last hour, according to CoinMarketCap.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, was also down 3% in the last hour following the news from Tesla’s earnings report.
Tesla and Musk have had an on-again, off-again relationship with Bitcoin.
The electric vehicle company invested $1.5 billion in Bitcoin in February 2021, after changing its investment policy in January to allow it to hold digital assets. It was seen as a very bullish move at the time. So much so that BTC hit what was then a new all-time high of $43,000.
Then, in May 2021, Musk seemed to sour on BTC as he announced that Tesla would stop accepting it as payment, citing concerns over the environmental impact of Bitcoin mining.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
In its 2022 first quarter report, filed in April, TSLA wrote that it believes in Bitcoin’s “long-term potential of digital assets both as an investment and also as a liquid alternative to cash.”
But it also warned shareholders that price changes tend to impact its profitability, which now seems like a harbinger for Wednesday’s announcement.
“For example, in the first quarter of 2021, we recorded approximately $27 million of impairment losses resulting from changing to the carrying value of our Bitcoin and gains of $128 million on certain sales of Bitcoin by us,” the company wrote in its April 25 SEC filing.