09 Feb 2021

Tesla invests $1.5 billion in bitcoin

On Monday Tesla announced through an SEC-filing that they had invested $1.5 billion in bitcoin in January, without disclosing their newly acquired BTC balance. Our estimations put Tesla’s BTC holdings at 43,053 BTC.
*Assumption based on VWAP price. Period: Jan 4th-29th Source: MicroStrategy, Tesla, Square, NYDIG
The market responded very positively to the news of Tesla’s $1.5 billion investment into bitcoin on Monday, as BTC soared through its former ATH. In the SEC-filing, Tesla elaborated on its investment:
“In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. […] we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future. Thereafter, we invested an aggregate $1.50 billion in bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”
While not disclosing the size of its fresh BTC stack, we have estimated its current BTC holdings to be somewhere around 43,000 BTC, based on the volume-weighted average price (VWAP) of the period Jan 4th to Jan 29th. With this investment, Tesla is closing in on the current BTC holdings of MicroStrategy, which as of today, sits at 71,079 BTC.A BTC stack of 43,000 BTC equals 0.23% of the total circulating supply of Bitcoin, turning Tesla into one of the major whales in the market.
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