Tesla confirms sale of 10% of Bitcoin holdings

On the Q1 Tesla Earnings call on April 26, Elon Musk confirmed the company sold 10% of their bitcoin holdings. The 10% sale made the company $272 million per the Q1 financial release.

Musk noted that Tesla was looking at innovative ways to store money but keep the liquidity of cash. Unlike traditional options which currently have very low yields, Bitcoin offered the potential of a significant return over the short term.

The 10% stake represented a $150 million investment, which returned $372 million only two months later.

Tesla became the first major automotive manufacturer to accept the cryptocurrency as a payment method only a few short months ago. Known for its volatile nature, Bitcoin has started to become a secondary currency for many larger companies. Companies such as Microsoft, Home Depot and even KFC now accept Bitcoin as payment.

Tesla nor Musk would confirm any other movements or thoughts on digital currencies during the call. This is a space to watch as Musk has been vocal about Dogecoin and Bitcoin in the past.

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