Tesla’s Bitcoin Holdings Increase by 220% Since Its Last Major Sale

Tesla's Bitcoin holdings were valued at approximately $735.5 million, comprising 11,509 BTC, as of Tuesday, October 1.

Electric vehicle (EV) maker Tesla has seen a substantial increase in the value of its Bitcoin holdings, which have risen by about 220% since its last major sale.

According to data from Arkham Intelligence, Tesla's Bitcoin holdings were valued at around $735.5 million, comprising 11,509 BTC, as of Tuesday, October 1.

The last recorded sale by Tesla was in June 2022, when the company sold 29,160 BTC at an average price of about $20,000. This move was part of a strategy to bolster cash reserves during a period of economic downturn. The sale netted Tesla about $586 million, though it occurred just before a significant market rally that saw Bitcoin prices surge to over $73,000 earlier this year.

Tesla CEO Elon Musk has been a known advocate for cryptocurrencies. The company's initial investment in Bitcoin began in February 2021, when it purchased about 43,000 BTC for $1.5 billion. Following a price spike shortly after that, the company capitalized on the bullish market by selling 10% of its holdings in March 2021, realizing an estimated profit of about $270 million.

While Tesla's Bitcoin fortune has grown significantly, it also comes with a bittersweet realization that the EV giant may have missed out on even greater profits by not following the HODL (Hold On for Dear Life) strategy. If Tesla had held onto its initial investment without selling, its current holdings would be valued at approximately $2.7 billion.

However, it's worth noting that while Tesla's decision to sell was framed as a strategic move to showcase Bitcoin's liquidity and strengthen the company's cash reserves, its choice to retain the remaining holdings reflects a bullish outlook on the cryptocurrency.

To recall, in May 2021, Tesla made headlines when Musk announced the company would stop accepting Bitcoin for car purchases, citing environmental concerns. Despite this pause, Musk indicated that Tesla would retain its Bitcoin holdings and planned to reintroduce the cryptocurrency once more sustainable mining practices are established.

If Bitcoin continues its upward trajectory, Tesla could see its investment yield further returns without incurring capital gains taxes.

Bitcoin was trading at $61,852 at press time, up 0.10% over the past 24 hours.