Bitcoin as an alternative to holding cash on a balance sheet for the corporate world is a profitable strategy.

The news came out on April 26, 2021. While announcing its Q1 2021 results, Tesla also mentioned that it had sold some of the Bitcoin it had purchased in early 2021.

As a reminder, Tesla had declared on February 8, 2021, that it had purchased $1.5 billion worth of BTC in January 2021 with part of its cash reserve. The company of Elon Musk had not given more information on this operation which had obviously been received in an ultra-positive way in the Bitcoin world.

The Bitcoin sale that Tesla has just announced allows us to learn a little more about the number of BTC owned by Tesla.

Tesla announced that at the end of March it sold $272 million worth of BTC at a 59% profit, i.e. $101 million. This allows us to deduce that Tesla had paid these BTC 171 million dollars.

Over the last three weeks of March, the price of Bitcoin averaged $55.1K. We can therefore estimate that Tesla sold 4,800 BTC to obtain $272 million. Since Tesla’s profit is 59%, the original cost of the Bitcoin Tesla bought was around $34.7K.

So we can finally deduce that Tesla was able to buy the equivalent of 43,000 BTC for $1.5 billion during January 2021.

Tesla would still own at least 38,300 BTC that cost $1.329B. At the time of writing, these 38,300 BTC are valued at more than 2 billion dollars. So Tesla is still making a profit of over $700 million on its Bitcoin investment as I write this.

This announcement of Tesla’s sale of Bitcoin has been met with a variety of reactions. Bitcoin opponents saw it as evidence that Tesla and Elon Musk were beginning to lose confidence in Bitcoin. De facto, it became important for Tesla to start taking profits.

The Bitcoin Maximalists saw this sale by Tesla as an admission of weakness. The proof that Elon Musk and Tesla were not strong hands.

In my opinion, you have to look beyond these initial feelings. If you think about it, you will understand that it makes perfect sense for Tesla to take profits with its Bitcoin. Not every company can afford to have Michael J. Saylor’s maximalist strategy of HODL Bitcoin forever.

Moreover, what we Bitcoin Maximalists can do in HODL no matter what forever, a company like Tesla cannot do. Tesla has shareholders and must therefore take them into account. Finally, taking profits in a bull market cannot be criticized.

That’s not what I intend to do, but everyone has the right to act as they wish in making the best decisions for their situation.

The fact that Tesla is selling 10% of its Bitcoin is great news for the future of Bitcoin as a reserve asset for the corporate world. It proves that investing in Bitcoin is a strategy that pays off. Real profits, not just unrealized capital gains, can be made.

Elon Musk himself explains that this Bitcoin sale was intended to demonstrate the liquidity of Bitcoin as an alternative to holding cash on a company’s balance sheet:

“Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”

Being able to so easily take profits and recover fiat currency from Bitcoin will show any CEOs still hesitating to take the plunge that Bitcoin is an excellent solution.

More and more large companies will follow Tesla’s strategy in the coming months and years. Tesla’s strategy will probably be cited as an example in a few years, as will Michael J. Saylor’s even bolder strategy. Bold for the moment, because in the future it will simply appear as brilliant.

Attacked by some Bitcoin opponents on Twitter, Elon Musk revealed even more interesting information afterward.

Many people missed this. While he had never whether or not he owned Bitcoin, other than via a 2018 tweet where he said he owned just 0.25 BTC, Elon Musk went further this time:

“I have not sold any of my Bitcoin.”

This does mean that Elon Musk would personally own Bitcoin. He doesn’t say how much, but it shows that Elon Musk is very confident in the future of Bitcoin. He may be flailing around posting tweets about Dogecoin to entertain his followers, but Elon Musk knows where the real revolution lies.

It’s a big news story that all the major media outlets have deliberately avoided by focusing on Tesla’s sale of BTC when it’s just noise since it represents only 10% of what Tesla holds in Bitcoin.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.inbitcoinwetrust.net/elon-musk-taking-profits-from-bitcoin-with-tesla-is-great-news-for-the-future-3102e176929d?source=rss——-8—————–cryptocurrency