Musk sells a ton of bitcoin

  • Tesla bought $1.5 billion worth of “digital assets,” then sold $272 million worth, during Q1, according to an earnings release Monday.
  • It also recorded a $101 million “positive impact” toward profitability from sales of bitcoin during the quarter; it accounted for this as a reduction in operating expenses.
  • It’s not immediately obvious how trading in bitcoin, which requires significant amounts of energy to mine, fits in with Tesla’s vision of accelerating the transition to sustainable energy.

Tesla reported first-quarter results on Monday, including a record quarterly net profit of $438 million on a GAAP basis.

As usual, those profits were buoyed by sales of environmental regulatory credits. But in a new wrinkle this quarter, the company’s sales of bitcoin during the quarter also contributed $101 million toward the bottom line.

In February, Tesla made waves when it announced a $1.5 billion purchase of bitcoin and said it may continue investing in cryptocurrency more broadly.

We are primarily funded by readers. Please subscribe and donate to support us!

On Monday, Tesla’s shareholder update revealed that sales of bitcoin made a $101 million “positive impact” to the company’s profitability during the period ending March 31, 2021.

www.cnbc.com/2021/04/26/teslas-bitcoin-speculation-helped-boost-profits-this-quarter.html

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.