Tesla has been one of the most vocal companies in the crypto industry, but the electric car giant did not buy or sell any Bitcoin in the fourth quarter.
The news was revealed in the company’s quarterly report, which was released on Thursday. The report stated that the company “did not purchase or sell any digital assets during the fourth quarter.”
At the close of the fourth quarter, Tesla’s digital asset holdings had decreased from $218 million to $184 million on account of impairment charges resulting from the drop in BTC price from $20,000 to $16,500. In Q2, Tesla sold $936 million in BTC, but Elon Musk stated that the sale should not be seen as a judgment on bitcoin and that Tesla may increase its BTC exposure in the coming months.
Tesla has been a major player in the crypto industry since February 2021, when it revealed its $1.5 billion purchase of Bitcoin.
Since then, Tesla has accepted Bitcoin as a payment method and discontinued, and continued to expand their crypto holdings with a recent $1.5 billion purchase of Ethereum. Its involvement has helped legitimize digital assets as investment assets.
However, it appears that Tesla has decided to take a break from buying and selling Bitcoin. It’s not clear why the company has decided to take a break, but it may be because the price of bitcoin has been extremely volatile over the last few months.
Tesla’s recent decision to pause its buying and selling of Bitcoin may have caused some concern among investors, as it may indicate a shift in the company’s bullish stance on the cryptocurrency. However, Tesla is still actively investing in the crypto industry, and the pause may simply be a way to assess the current markets and wait for volatility to settle down before making any further moves.
