The crypto market was already shaken this week by false reports of a Bitcoin spot ETF launch. However, things are about to get even more chaotic as Elon Musk and Tesla are preparing to reveal their Bitcoin holdings in the earnings report for the third quarter of 2023. This event is expected to have significant implications for the world of digital assets.
Tesla’s foray into the realm of cryptocurrencies began with a splash two years ago when the company made a substantial investment of $1.5 billion in Bitcoin. Simultaneously, Tesla announced plans to accept Bitcoin as a payment method for its vehicles.
Fast forward to the second quarter of 2023, Tesla disclosed that it had neither acquired nor divested any Bitcoin holdings, maintaining a consistent digital asset balance of $184 million. Current accounting regulations prevent Tesla from recognizing a profit as long as the assets remain unsold.
However, in the event of a significant decrease in Bitcoin prices, accounting rules allow for the valuation of these assets to be adjusted downward. It’s important to note that in Q2 of last year, Tesla sold over 30,000 BTC, which was around 75% of its holdings. The sale resulted in an impressive $936 million.
The crypto community, on the edge of their seats, eagerly awaits Tesla’s latest Bitcoin holdings update. The entire industry is bracing for a potential major shift, one that could profoundly influence not only Bitcoin’s valuation but also the overall sentiment surrounding digital assets.
Analysts and investors are closely monitoring this development, anticipating the ripple effects this revelation might have on the volatile crypto market. With Tesla’s substantial influence in both the tech and financial sectors, any move related to Bitcoin by the company is bound to send shockwaves through the global financial landscape.
According to recent reports from ICO Drops, Tesla’s upcoming plans may involve accepting Dogecoin, a cryptocurrency that originated as a meme as a payment method to buy cryptocurrencies. The discovery of references to Dogecoin in the code of the Tesla Cyber Pickup order page suggests that we may be on the brink of a paradigm shift in the way people purchase electric vehicles.
