Tesla Willing to Accept Bitcoin Again, Even After $1 Billion in Losses
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We’ve seen Tesla CEO Elon Musk move the cryptocurrency market around more than a few times. With his recent comments a week ago, Bitcoin went on a brief run before stalling. Of course, it dragged the whole market with it, and all just because Tesla has announced that it’s willing to accept BTC again.
After announcing in May that it will no longer accept Bitcoin, Tesla sent the market into a massive plunge. Bitcoin couldn’t recover for weeks, but is now over the $35,000 mark once again. After a few ups and downs, it looks set to test $40,000 once again, after Musk stated at a B Word crypto conference that his electric car company is likely to resume accepting Bitcoin.
He continued to investigate the fossil fuel usage in Bitcoin mining. The investigation confirmed that renewable energy usage is over 50%, which is the reason why Tesla will soon continue accepting BTC.
No Dumps
For what is worth, Musk isn’t the type of person who pumps and dumps. He said that Tesla held onto its Bitcoins during the recent plunge, losing over $1 billion in the last quarter.
“I’m not a person who pumps and then dumps…I hold on to Bitcoin because I like to see it succeed,” Musk said. That’s definitely a great strategy from a person who obviously knows a thing or two about cryptos. He has constantly been criticized for using his influence on cryptocurrencies. Tesla sent the crypto market flying in earlier this year, then announced that its dropping Bitcoin support two months later.
A lot of people lost money in that process, yet Musk cited environmental reasons for doing it. He then investigated and ensured that the process of mining is mostly environmentally friendly which led to the latest comments. However, his comments weren’t in vain.
With the carbon footprint of Bitcoin mining becoming a serious threat to the environment, many new coins have been invented that run 100% green. It’s obvious that Musk’s comments have shifter the energy consumption stance among many miners, and that can only be a good thing.
Tesla Loses Over $1 Billion of BTC in the Last Quarter
In early February, Tesla bought $2.5 in BTC and announced adding the cryptocurrency as payment for its electric vehicles. However, after just two months, Musk’s company infamously stopped accepting BTC, causing a crash of nearly 40%. During that period, Tesla didn’t sell its Bitcoins. Instead, it held onto it, even after wiping $1 billion off its profits.
The company also reported a further $23 million impairment loss that occurred of its Bitcoin holdings. Musk hasn’t disclosed how much Bitcoin was bought by the company, but we know that it happened before February 8 2021 when the price range was between $30,000 and $38,000.
Since then, it’s been a wild ride. From Bitcoin testing $45,000 and $50,000 to Doge flying toward $1, Musk’s comments earlier this year sent the market flying. It’s crashed since then, but following the latest Tesla statements, it seems to be on the right course once again.
