Auto giant Tesla, in its address to investors and the report on the results of the first quarter of this year, said that it actually sold 10% of its stock of Bitcoins (more than $270 million), previously purchased for $1.5 billion.
Thus, the company's account will remain about $1.33 billion in cryptocurrency equivalent at the exchange rate at the beginning of February. But the rules for registering a company do not allow to recalculate this amount, according to which the figure cannot be adjusted depending on the rate of the main cryptoasset. In its “justification”, Tesla said it intends to use the proceeds to eliminate difficulties with cash liquidity when the need arises.
Finding director Zack Kirkhorn, previously hailed as the "Master of the Coin", said Bitcoins are a valuable long-term asset and the company does not intend to abandon them. He also stressed that Tesla's ability to quickly secure itself in a leadership position when making a purchase of BTC most likely played an important role in the speed of selling some of the assets.
Kirkhorn also talked about how he and Musk dealt with the issue of keeping cash that could be used in the future without losing liquidity. One of the main factors in the issue was the speed of gaining access to funds. Most of the traditional ways of storing money did not suit them, so they turned to Bitcoin. Tesla CFO confidently stated that the coin has become an excellent option for placing some funds that do not need to be used “here and now”. In addition, the asset also allows you to get a good "return" in the long run.
In social networks, of course, rumors immediately spread that Musk had betrayed his own principles of investing in cryptocurrencies. Dave Portnoy, who was disappointed in his time with Bitcoins, jokingly accused Musk of buying BTC at a low price, pumping them, and then selling them. The billionaire himself even wrote to the message, specifying why the company decided to “liquidate” 10% of the asset.
In addition to “crypto activity,” Tesla also posted a $438 million profit in its earnings report, setting a new record in history. The company expects the supply of electric vehicles to increase by 50% as early as 2021.