One of the largest Bitcoin holders reports that he has not sold a single coin during the recent declines. His portfolio is valued at $1.26 billion.
Tesla’s diamond hands
Tesla’s latest report showing its digital asset holdings for the fourth quarter of 2021 shows that the popular electric car maker has not changed its Bitcoin holdings. Thus, Tesla joins the ranks of hodlers of the cryptocurrency king who are not bowing to any declines.
Shares of Tesla (TSLA) in Bitcoin were virtually unchanged through the end of 2021. For both the third and fourth quarter, they were reported to be at $1.26 billion. Thus, Tesla did not buy a single new coin, nor did it sell any. Due to the small change in the price of the asset between the end of September and the end of December, there were also no quarterly write-downs indicating a financial loss in the stock. The case was different in the third quarter, when price volatility resulted in an unrealized loss of $51 million.
The Tesla and Bitcoin story
It’s been almost a year since Tesla announced BTC purchases for its balance sheet. In February 2021, Elon Musk announced that the company he heads was enriched by Bitcoin, with a total market value of $1.5 billion. The automaker’s position has diminished over time. Still in the first quarter of 2021, suggesting a check on market liquidity, 10% of the portfolio was sold. This increased the company’s profits by $272 million. Since then, Tesla’s portfolio has stood unchanged. Musk has suggested in earlier interviews that he has no intention of making further sales, which is confirmed by the current data.
Unrealized profit or loss?
Even though Tesla had a highly valued gain due to the volatility of Bitcoin, it chose not to realize it over time. A simple calculation shows that the current dollar valued BTC holdings in the electric car maker’s portfolio illustrate a small percentage loss. However, this does not seem to matter much to Elon Musk. With the world’s difficult economic situation and uncertain future, owning Bitcoin is still a portfolio diversification that Musk undoubtedly cares about.
The American car company, is not the only high-profile crypto investor of recent times. Want to find out who else is buying Bitcoin? Find out by reading the article “Institutional Investments in Bitcoin”.