Tesla's Bitcoin Investment Hits Nearly $2 Billion—Here's How That Compares To Billionaire Novogratz's Galaxy, Dorsey's Square And More

Electric car maker Tesla announced on Monday that Bitcoin's holdings had risen to nearly $ 2 billion by the end of December, and billionaire Elon Musk-led company did not sell cryptocurrencies in the second half of last year. I confirmed that. Its status as Bitcoin was merged by the US Group, which has the second highest supply of Bitcoin.

GET A £200 LIDL VOUCHER NOW!

Important facts

In an annual report released Monday, Tesla said the market value of Bitcoin holdings increased to $ 1.99 billion as of December 31, after investing $ 1.5 billion in the first quarter, and current assets. Announced an increase of approximately 10% (including cash and securities).

Last year, the company revealed a $ 101 million book loss, backed by Bitcoin volatility, but last year the company reported a $ 272 million profit from the sale of digital assets. "We believe in the long-term potential of digital assets. As a liquid alternative to investment and cash."

According to the Bitcoin Ministry of Finance, about 43,200 Bitcoin Tesla owns more than eight of the top 10 corporate owners, the world's largest cryptocurrency, but the stubborn Bitcoin Bull, which owns 125,051 coins. It's worth about $ 5, which is inferior to MicroStrategy, a data analysis company led by Michael Sailor.

As of January 1, cryptocurrency mining company Marathon Digital owns $ 375.8 million worth of 8,133 Bitcoins and Jack of Billionaire began buying Bitcoins just before Tesla in October 2020. Dorsey's Square owned about $ 350 million worth of 8027 coins.

The remaining top 10 holders include cryptoexchange Coinbase (which owns nearly $ 200 million in 4,487 bitcoins), billionaire Michael Novogratz's digital asset financial services company, Galaxy Digital ($ 173 million worth of 4,000 coins). Owned), and numerous small mining companies including Hut 8 Mining. , Bitfarms, Riot, and Hive Blockchain own a total of $ 800 million worth of Bitcoin.

LIST

1. MicroStrategy: 125,051 bitcoins
2. Tesla: 43,200 bitcoins
3. Marathon Digital Holdings: 8,133 bitcoins
4. Square Inc.: 8,027 bitcoins
5. Hut 8 Mining Corp: 5,242 bitcoins
6. Bitfarms Limited: 4,600 bitcoins
7. Coinbase: 4,487 bitcoins
8. Riot Blockchain: 4,464 bitcoins
9. Hive Blockchain: 4,032 bitcoins
10. Galaxy Digital Holdings: 4,000 bitcoins

GET A £200 LIDL VOUCHER NOW!

Big number

$ 10 billion. According to London-based crypto firm Nickel Digital Asset Management, about 20 listed companies with a market capitalization of over $ 1 trillion have invested in Bitcoin.

Main background

Cryptocurrencies have been pushed to meteor heights during the pandemic due to rising institutional acceptance and growing concerns about inflation, but they are not without catastrophic volatility attacks. 20 in the past year, including May when Tesla announced that it would stop investing in Bitcoin for investment shortly after Tesla invested $ 1.5 billion in February and immediately raised Bitcoin to a new high. It was hit by a% decrease. Vehicles-due to the environmental impact of the industry. At around $ 43,888 on Monday, Bitcoin prices have risen 13% over the past year, but are 35% below record highs.

What we don't know

Whether Tesla will reinvest in Bitcoin or accept it as a payment method. On Monday, the company said it could "add or reduce its holdings of digital assets at any time" based on market and environmental conditions, but did not provide further details on the future of cryptocurrencies.

AGAINST

"Investing in Bitcoin exposes corporate cash to unnecessary volatility and potential losses," Jerry Cline, managing director of Treasury Partners, a $ 19 billion consulting firm, emailed last week. I wrote a comment. Accounting rules require companies to treat Bitcoin as an intangible asset. That is, a company must cancel its value when its price goes down, but it cannot cancel its value when its price goes up. "This creates the current situation from an accounting perspective," he points out.

GET A £200 LIDL VOUCHER NOW!

Read more

Tesla's Bitcoin investment fell $ 1 billion in the second quarter in the collapse of the crypto market (Forbes)

Billionaire Sailors MicroStrategy last month in the collapse of the $ 500 billion crypto market (Forbes) I bought $ 25 million worth of Bitcoin