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Tesla selling Bitcoin last year turned out to be a $500M mistake

Published 04/14/2023, 09:02 AM
Updated 04/14/2023, 10:40 AM
© Reuters.
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The price of Bitcoin (BTC) has grown by more than 50% since Tesla (NASDAQ:TSLA) unveiled its approximately $1 billion BTC sales in July 2022. In other words, the Elon Musk-owned electric carmaker would have made an additional $500 million if it had waited until today to sell.

Tesla infamously dumped nearly $936 million of its total Bitcoin holdings in Q2/2022, accounting for 75% of its remaining reserves, to secure a $64 million profit. At the time, Bitcoin was trading about 70% lower than its record high of $69,000 in November 2021.

BTC/USD monthly price chart featuring Tesla's Bitcoin sales purchases and sales. Source: TradingView
Tesla free cash flows performance by quarter. Source: Statista

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