According to a securities filing, Tesla is sitting on roughly $2.5 billion worth of bitcoin, giving the automaker a significant gain on paper just a few months after investing. Tesla’s investment was worth $2.48 billion at the end of March. Earlier this year, the company announced that it had purchased $1.5 billion worth of bitcoin and planned to accept it as payment for vehicles.
Tesla registered a net gain of $101 million from sales of bitcoin.
Tesla revealed this week that it registered a net gain of $101 million from sales of bitcoin during the quarter, helping to boost its net profits to a record high in the first quarter. Tesla does not account for bitcoin as a mark-to-market asset, meaning it only recognizes an earnings benefit if it sells to lock in the gains. Bitcoin was trading near $59,000 on the final day of March, slightly above where it was trading on Wednesday morning. At the time of writing, BTC is changing hands at just above $55,000.
Major companies warm up to cryptocurrencies.
Major institutions have recently added bitcoin and other cryptocurrencies to their balance sheets or as a payment method in their platforms. The leading cryptocurrency has witnessed a massive winning rally this year, reaching several all-time highs frequently. Bitcoin has gained more than 80% this year. As reported earlier, major wine retailer Acker announced that it was accepting Bitcoin, Ethereum, and Dogecoin as payment methods for its wines. Earlier, PayPal announced to enable its US customers to deal in cryptocurrencies. The unprecedented growth of bitcoin has also attracted regulators’ eyes from the world as governments work to regulate the industry.