We do the research, you get the alpha!
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
$66,753.00
1.32%$3,234.99
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1.65%$605.20
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2.92%$3,233.67
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4.72%$39.09
1.42%$66,823.00
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0.15%$4.93
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2.84%$0.864884
0.75%$0.03352055
2.67%$3.99
-0.82%$4.29
0.19%$0.65024
3.88%$0.00786235
-1.02%$0.00798
1.97%$4.05
-0.95%$0.600191
2.97%$3.59
-2.68%$2,311.14
-0.94%$0.42288
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1.14%$1,341.64
1.63%$0.460851
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0.51%$0.269112
2.00%$3,321.64
2.01%$0.405102
15.58%$0.97134
-1.30%$0.03810504
0.56%$0.03264138
2.13%$65.10
2.16%$4.91
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1.17%$23.73
6.10%$4.13
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2.50%$0.485159
0.67%$0.760198
3.76%$5.72
0.67%$31.52
1.40%$0.04110042
1.99%$0.02960711
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2.31%$4.35
3.71%$0.835573
-0.61%$1.015
5.03%$3.61
0.97%$0.126205
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2.36%$0.00666926
1.39%$8.35
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0.63%$43.91
2.85%$0.03414693
0.23%$0.953234
1.94%$28.45
4.13%$33.15
0.31%$0.347267
3.27%$2.58
1.89%$38.03
-16.35%$44.40
1.31%$0.290297
8.87%$0.00382693
2.31%$0.175181
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1.47%$0.02237719
2.46%$0.764876
3.18%$30,572.00
0.93%$0.722012
-1.75%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.