Tesla said they believe in the potential of digital assets

The company published a report announcing its cryptocurrency holdings worth $1,26 billion

03.05.2022 - 10:35

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What’s new? Tesla has submitted its 2022 first quarter earnings report to the US Securities and Exchange Commission (SEC). It says the company believes “in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.” According to the document, Tesla has cryptocurrency holdings totaling $1,26 billion.

Report on the SEC’s website

What else does the report say? The company tested payments using Dogecoin in January 2022 and also added the ability to pay for accessories with the meme cryptocurrency, but there is no revenue line item from DOGE in the quarterly report.

“We may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions,” the document says.

What happened before? In February 2021, Tesla announced a $1,5 billion bitcoin purchase. In March, the company authorized the purchase of electric cars for cryptocurrency, but Tesla sold some of its BTC in the same month.

In May 2021, Tesla CEO Elon Musk suspended buying cars for the first cryptocurrency because of the “increasing use of fossil fuels for bitcoin mining.” However, he later noted that “bitcoin is moving towards renewable energy”. If the percentage of renewable energy is at or above 50%, the company would accept payments in BTC again, Musk said.

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