Tesla CEO Elon Musk stands at the Tesla Gigafactory construction site in Grünheide near Berlin, September 3, 2020.
Patrick Pleul | photo alliance | Getty images
Tesla is sitting on about $ 2.5 billion worth of bitcoin, according to a securities filing, giving the automaker a significant profit on paper just a few months after investing.
The automaker said its investment in the volatile cryptocurrency was worth $ 2.48 billion at the end of March. The company announced earlier this year that it had purchased $ 1.5 billion worth of bitcoin and plans to accept it as payment for vehicles.
Tesla said on Monday that it recorded a net profit of $ 101 million from bitcoin sales during the quarter, pushing its net profit to a record high in the first quarter. Tesla does not consider bitcoin as a mark-to-market asset, meaning it will only recognize a profit advantage if it sells to capture the profits.
Bitcoin traded near USD 59,000 on the last day of March, slightly above where it traded on Wednesday morning. The crypto asset has grown strongly in the intervening weeks, trading well above USD 60,000 before declining sharply below USD 50,000.
Tesla’s shares fell slightly in premarket trading on Wednesday. The stock, which has been one of the best performers in recent years, has fallen by more than 15% in the past three months.
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