Tesla earns 600 million dollar profit thanks to Bitcoin

0

Last Updated on 31 January 2025 by CryptoTips.eu

The world’s richest man, Elon Musk, will once be able to boast of his crypto knowledge. Thanks to an adjustment of the accounting practices for companies in the United States, he was able to report during Tesla’s latest quarterly results that the Bitcoins his company had already purchased in 2021 generated a profit of some $600 million.

Advertentie.

Tesla and Bitcoin

Elon Musk has been a fan of crypto for some time. Analysts agree that Dogecoin’s record rally in 2021 was mainly due to Elon Musk talking about it quite a bit on social media.

During that year, in February to be precise, his car company Tesla also became one of the first major companies to officially register Bitcoin holdings on their company accounts. Musk, who likes to take a risk, instructed his CFO to invest one and a half billion dollars of Tesla’s profits in Bitcoin. That news immediately boosted the price of the largest digital currency by about $10,000, after which Bitcoin traded at $44,000.

During the crypto disaster year of 2022, Tesla sold most of its Bitcoins, but in 2023 and 2024 the company turned out to be a real Hodler.

This month, a change was made to accounting practices in the United States. Companies that have digital coins on their accounts are no longer obliged to register them at the lowest price of the past quarter, but at the last price of the quarter.

At about $100,000, that price was much higher than the lowest price in Q3, so Tesla’s profit was boosted thanks to Bitcoin’s rally.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts