Tesla Publishes Losses With Bitcoin While MicroStrategy Keeps Accumulating BTC

Tesla has just published their financial report for the fourth quarter. The company has revealed that they were able to meet and beat the earnings targets.

They even managed to exceed the expectations for revenues. While Tesla reported that they were not facing any kind of major losses, they did mention that Bitcoin (BTC) is putting them at a loss.

The company made a huge investment in Bitcoin back in April of 2021. Since then, Tesla has kept holding onto a portion of the Bitcoin tokens it had initially purchased.

The company purchased almost $1.5 billion worth of Bitcoin in the year 2021. However, the company has continued selling them whenever it had dealt with some kind of loss.

With reference to the above, Tesla has been forced to admit that their investment in Bitcoin has been a loss.

Tesla Faces a Loss in Terms of Bitcoin

Tesla officials were glad as they shared the earnings report for the fourth quarter of 2022. They were excited about the earnings and the revenues they had generated from their primary (EV) segment.

After sharing the earnings report, the company’s share prices have taken flight, recording more than a 13% surge in the latest trading session.

Another major reason why the company’s shares shot up was because of the recent prediction made by Elon Musk. The CEO of Tesla predicted that they may be able to deliver more than 2 million EVs in 2023.

Company’s Revenue and Earnings

Tesla confirmed that in the fourth quarter of 2022, it generated a revenue of $24.32 billion while the expectations were $24.16 billion.

As for the earnings, the company has generated $1.19 per share earnings while the forecast was set to $1.13 per share.

The company even reported that its year-over-year revenue has increased by 33% and its total revenue for the fourth quarter was at $21.3 billion.

In addition to the above, the company reported that they have not purchased any Bitcoin in the fourth quarter. However, they do have held onto the Bitcoin that was already in their possession.

As of now, they have a total of $184 million worth of Bitcoin in their possession.

Tesla Tried Copying MicroStrategy

Tesla made its Bitcoin purchase for $1.5 billion back in 2021 and since then, the company has not carried out any more purchases for Bitcoin.

This means that the company wanted to benefit from the spikes that Bitcoin was witnessing in its trading price throughout the year 2021.

Unfortunately, the company’s expectations were laid to waste when the trading price of Bitcoin started to fluctuate. Soon, the price of Bitcoin had plunged from a high of $60k+ figure to mid $45k.

Shockingly, the price kept on plummeting and by the end of 2022, BTC price had plunged to $16k per BTC. Already feeling a lot of pressure from the macroeconomic downtrend, Tesla did not dare acquire any more BTC.

MicroStrategy is Still Bullish

Initially, Tesla tried imitating MicroStrategy, considering itself as a Bitcoin pro as the latter company. However, as BTC plunged, Tesla gave up so easily while MicroStrategy is still purchasing Bitcoin.

The company has not lost its confidence for once in Bitcoin. It has continued investing heavily in Bitcoin and to this day, it keeps on accumulating more Bitcoin.

This goes to show that MicroStrategy, a major business intelligence firm from the US has strong trust in Bitcoin. It has remained loyal to Bitcoin even through the worst situations.

To this day, MicroStrategy has accumulated a total of 132,500 BTC. The business intelligence firm started accumulating Bitcoin in August 2020.

Since then, it has added more and more Bitcoin to its treasury and there is only one instance where the firm sold a few hundred BTCs.

However, its selling activity was followed by another accumulating activity, which saw MicroStrategy acquire even more Bitcoin.

The holding MicroStrategy currently has translates to over $3 billion.

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