The unaudited balance sheet for Tesla shows that the company is hodling digital assets valued at $1.261 billion.
Although the report does not reveal the type of Cryptocurrency that the firm owns, CNBC’s Crypto analyst Kevin Helms speculates that the assets comprise Bitcoin, Dogecoin, and Ethereum.
Overall, the electric car company has grown its assets to $66.038 billion in the first quarter of 2022 compared to $52.972 billion last year.
Further, the statement of cash flows shows that Tesla’s net income has grown meteorically from $464 million last year to $3.28 billion in 2022. This growth indicates that the company’s growth is going in the right direction, buoyed by a surge in demand for electric cars.
Tesla is Hodling Crypto
The statement of cash flows shows that Tesla incurred a $1.5 billion expense in purchasing digital assets in the first quarter of last year. The company sold Crypto worth $272 million, and the digital assets account has remained inactive since.
The report is likely to send positive sentiments in the crypto markets since investors expect that Tesla has the resources to forecast the future and Crypto to make investments decision. Elon Musk has also said that he owns ETH, BTC, and DOGE, which he hodls.
Crypto is a Store of Value
BTC has matured in the last two years and is more stable. The bulls and bears are not as extreme as they used to be as the market has adopted a self-correction mechanism. The stability of Bitcoin has stabilized the entire market as the digital asset dominates the market by over 40%.
The balance sheet clearly illustrates this assertion, where the value of the digital assets has maintained a conservative range of $1.3 billion and $1.26 billion. This stability comes despite the turbulent macroeconomic environment characterized by labor shortages, inflation, supply chain disruptions, and tightening monetary policies.
Tesla Accepts Dogecoin Payment
Elon Musk’s belief that DOGE is a better digital asset for transacting is showcased by the fact that Tesla accepts DOGE payment for selected merchandise. The business has yet to roll out BTC payment solutions, but this program could be a work in progress.
As Tesla gears for a profitable future, Elon Musk is making headlines as his offer to buy Twitter shares is attracting controversy. The billionaire has secured $42 billion to get a 9.2% of the shares, giving him the voting rights to determine the social media platform’s policies.
The latest Coinmarket Cap data shows that the aggregate market capitalization has marginally declined below the $1.9 trillion mark as the bears prevail.