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Tesla's investment in Bitcoin yields impressive returns, surpassing $600 million, aligning with the cryptocurrency's recent surge.
Tesla's Rollercoaster Ride with Bitcoin: From Investment to Reconsideration
Tesla is among the few major publicly traded firms that have chosen to allocate a portion of their cash reserves to bitcoin.
The company made a $1.5 billion investment in Bitcoin in early 2021. Soon after, the car manufacturer began allowing the use of Bitcoin as a form of payment for new automobiles.
Tesla eventually retracted its support for cryptocurrency by eliminating the opportunity to purchase it using Bitcoin. The corporation expressed worries over the energy requirements of the Bitcoin network, as per The Electrek.
It has halted the acquisition of vehicles using Bitcoin. Industry sources are worried about the growing usage of fossil fuels, particularly coal, for Bitcoin mining and transactions due to their high emissions.
Many Tesla community members expressed alarm when Tesla initially revealed their Bitcoin investment, with some feeling angry that the business had not considered this aspect beforehand.
Tesla stated they were not liquidating their Bitcoin holdings and intended to restart accepting Bitcoin payments when the network transitioned to a more significant proportion of renewable energy sources.
Elon Musk’s car company said last year that it was considering accepting Bitcoin payments again, although this has not materialized yet.
Tesla's Bitcoin Journey: From Growth to Downsizing and Renewed Value Surge
One year after investing, Tesla's Bitcoin holdings grew to $2 billion. However, the cryptocurrency's value decreased significantly in 2022, impacting Tesla's position. During that time, Tesla also sold off almost 75% of its Bitcoin holdings.
Tesla generated more than $1.2 billion by selling Bitcoins, but the company still retains a significant portion. Bitcoin's value is now seeing a significant increase. The value has increased by 55% in the past month.
Tesla's Bitcoin holdings increased in value to more than $650 million as a consequence.
Bitcoin is now seeing a significant increase in value in anticipation of the upcoming halving, scheduled for mid-April. The halving cuts the mining reward by half, decreasing the rate of new Bitcoin being added to the network.
Photo: SCREEN POST/Unsplash
