Tesla sold $272 million in Bitcoin in Q1

Tesla Bitcoin

The trim. Tesla posted its Q1 quarterly earnings, and the highlight among the big numbers is the fact that the electric vehicle company sold Bitcoin for proceeds of $272 million.

Elon Musk had the firm purchase $1.5 billion in BTC in February, which lead to a sudden spike in the value of the original cryptocurrency, which is currently sitting at $55,305. This sale, however, has trimmed Tesla’s position by 10%.

These details were revealed by Tesla CFO Zach Kirkhorn, Monday, in an earnings call.

Tesla Logo

In a slide deck accompanying the company’s first quarter earnings results, Tesla mentioned the sale of some bitcoins:

“Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in ‘Restructuring & Other’ line) were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items. Model S and Model X changeover costs negatively impacted both gross profit as well as R&D expenses.”

An image that accompanies:

Tesla Bitcoin Sale

Kirkhorn said on the call that Tesla invested in Bitcoin to earn yield on its excess cash in a low interest rate environment. The Bitcoin market, he says, is a liquid market with an optimistic future. The company holds this view, despite the perception of the digital coin as a risky asset.

At least, among most traditional financial analysts.

Kirkhorn added that Tesla will continue to accumulate Bitcoin through customer transactions, and has promised that the company will make further Bitcoin related announcements in the future.

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