TL;DR
- Tesla maintains its confidence in Bitcoin by keeping its 9,720 BTC intact during the first quarter of 2024, without making any sales or purchases.
- The company reported disappointing financial results, with revenues of $12.3 billion, well below the expected $21.4 billion.
- Elon Musk hinted at the possibility of using Dogecoin as a payment method at Tesla.
Tesla, the electric vehicle company led by Elon Musk, continues to show its confidence in Bitcoin, keeping its BTC intact during the first quarter of 2024. According to the company’s quarterly report, no BTC sales or purchases were made during this period, maintaining its reserve of 9,720 BTC, valued at approximately $711,050,000.
Tesla’s strategy unfolds in a context where the value of Bitcoin has experienced notable growth, partly driven by the approval of the Bitcoin Spot ETF. The bullish trend suggests that Tesla’s reserve could have generated considerable gains during the first quarter of the year.
Despite maintaining its assets in Bitcoin, Tesla reported financial results that did not meet market expectations. During the first quarter of 2024, the company recorded revenues totaling $12.3 billion, significantly below the expected $21.4 billion. Additionally, Tesla’s free cash flow was negative, reaching $2.5 billion.
The disappointing financial results starkly contrast with Tesla’s past performance, which could raise concerns among investors about the company’s ability to achieve its short- and long-term financial goals.
Tesla and its Investors Bet on Bitcoin
However, Tesla’s stock rose 5% in after-hours trading after the results were released. This could indicate that investors are backing Tesla’s decision to maintain its assets in Bitcoin, and have partially overlooked the financial challenges facing the company.
In addition to its connection with Bitcoin, Elon Musk, CEO of the automaker, has suggested that the company could consider accepting Dogecoin as a payment method in the future. During a visit to the Gigafactory in Berlin, Musk expressed his support for the meme coin, suggesting that Tesla should allow payments with it at some point.
If the adoption of Dogecoin as a payment method were to materialize, it could have significant implications for the future of the cryptocurrency and for the company’s payment strategy.
