Robert Steinadler, 2 months ago
When Elon Musk announced in early 2021 that Tesla would become a Bitcoin company, investing in Bitcoin and accepting BTC for payments, the market went crazy. Alas, Elon turned down the Bitcoin community later when Tesla renounced its plans to accept BTC. The story took another unfortunate turn last year after Tesla sold a sizeable portion of Bitcoin.
What does the Q4 report reveal about Tesla’s relationship with Bitcoin?
The company sold over $900 million BTC in July 2022 and ever since it became quiet around Tesla when it comes down to Bitcoin. Many analysts feared that Tesla could tank the price by announcing further sell-offs. With the Q4 report published, we can rest assured that this moment hasn’t come yet, and that Tesla is better off than what many analysts expected. This hints that there is no reason for Tesla to sell any of its remaining BTC.
Another fact that can be derived from the report is that Tesla reported a $34 million impairment charge. This is not much of a revelation, since it only means that Tesla’s investment in Bitcoin has lost value. Tesla holds 10,725 BTC in its portfolio, making it one of the biggest players on the field next to MicroStrategy and a few others.
Musk has faced criticism more than once for hyping Bitcoin and Dogecoin on Twitter. Now that he owns the social media network, many expect that Musk will make another strong move toward Bitcoin adoption.
So far, we only have seen jokes and memes in 2022, and it is hard to say if he has any serious plans for 2023. Crypto is not a major concern for Twitter currently as the company tries to figure out a way to become profitable. The same goes for Tesla and SpaceX. If this year should bring a recession, then both companies would have bigger problems than finding a way to accept Bitcoin.
The best we can hope for in 2023 is more memes and jokes from the “Dogefather”. This will not drive mass adoption, but draws a lot of attention in an uneasy economic environment. Investors should watch out for Elon’s tweets this year. Perhaps we get lucky and one of his statements will set the crypto market once again on fire.
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