Bitcoin is the world’s leading and biggest cryptocurrency, with a current price of approximately $53,900 (which is a 2.7 % increase within the past 24 hours) and a market capitalization of $1,006,607,042,011. Despite a recent market crash which had resulted in numerous altcoins as well as Bitcoin drastically decreasing in price, things seem to be going relatively well again for the digital asset.
This argument was strengthened even further when Tesla, clean energy and electric vehicle manufacturing company based in Palo Alto, California, had announced that it would be allowing customers to purchase vehicles through the use of Bitcoin itself. Elon Musk, the CEO of Tesla, has long since been supportive of cryptocurrencies in general and desires to help make their adoption more mainstream. He, alongside fellow billionaire Mark Cuban, had also recently provided support for the ‘joke’ cryptocurrency Dogecoin, which had ultimately culminated in DOGE becoming the 7th highest ranked cryptocurrency in the world today in terms of market cap.
Massive profits for Tesla via Bitcoin sales
A couple of months ago, in February, the company had made it known to the public that it had officially bought Bitcoin, which amounted to a whopping $1.5 billion. Tesla Motors had then managed to sell off a portion of the Bitcoin holdings within this year’s first quarter, and in doing so, it generated nearly $272 million in net proceeds.
According to a report detailing 2021’s Q1 financial results and statistics, Tesla had acknowledged that a slightly above $100 million ‘positive impact’ had been created thanks to the Bitcoin sale. Furthermore, as per the Q1 cash flow statement, Tesla had also stated that the sales of the digital assets had resulted in proceeds that were worth $272 million.
Success for Tesla
We have already mentioned that Tesla had managed to buy a sizable chunk of Bitcoin which ultimately resulted in generating nearly $1.5 billion. At the time of acquisition, this had amounted to almost 8% of the company’s gross cash position. Moreover, Tesla had also made it clear that if someone were to buy an electric vehicle through the use of Bitcoin, then the Bitcoin would not be converted into fiat currency and will remain in its crypto form.
In related news, the company had also generated $438 million in net income during Q1, which was also a new ATH (all-time high). As for the per-share earnings, these had been 93 cents on revenue of $10.4 billion. Lastly, it is also believed Tesla that a 50% growth in electric vehicle delivery will take place in 2021 as well.