Tesla’s first quarter earnings report released on Monday showed that the company sold off 10 per cent of its Bitcoin holdings. It made $272m in proceeds and $101m in profit from Bitcoin.
The car maker made more money from Bitcoin than car sales. Tesla’s profits hit $438m with nearly a quarter of that earning coming in Bitcoin sale.
Ryan Brinkman, who follows Tesla for JPMorgan Chase, in a note to clients on Tuesday said, “If you strip away the company’s gain on both bitcoin and regulatory credit, its core business of selling cars and solar panels actually lost $25m in the quarter.”
Because of the mixed reaction that followed the sale of some of their Bitcoin asset, Tesla’s CFO Zachary Kirkhorn, during the earnings call said, “We do believe long-term in the value of Bitcoin.
“It is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles.”
Meanwhile, after Elon Musk referred to himself as ‘The Dogefather’ on Wednesday, the price of dogecoin shot up.
The meme-inspired cryptocurrency rose from $0.25 to $0.30 in less than 15 minutes, pushing to heights it earlier experienced this month.
Much focus is on Dogecoin today after Elon Musk’s cryptic tweet and reference to his appointment on SNL next month. The coin has appreciated by almost 20 per cent today.
This is coming off a turbulent month for the cryptocurrency market that is just recovering from losses it made in recent weeks. With bitcoin mostly flat, though still volatile.
