At the beginning of 2021, Tesla invested around $1.5 billion of its free cash in bitcoin and even started accepting this cryptocurrency as payment for new electric vehicles, but then abandoned this idea for security reasons. reputation. Since then, the company’s cryptocurrency assets have depreciated by more than $500 million, although that won’t be a disaster for the biggest maker of electric vehicles.
Earlier this year, Tesla increased the number of bitcoins in its investment portfolio to the equivalent of $2 billion at the exchange rate in effect at the time of purchase. According to independent sources, Tesla’s entire cryptocurrency assets are now worth no more than $905 million. In other words, according to the most minimal estimates, the company lost almost $600 million on these investments.
The company does not hold more than 10% free cash in cryptocurrencies and their share in its capitalization does not exceed 0.1%. It is therefore unlikely that the depreciation of bitcoin will have a critical impact on the financial situation of the car manufacturer. Company chief Elon Musk invests part of his personal funds in cryptocurrencies, but does not intend to part with these assets in the near future, considering it a long-term investment. term. Tesla intends to start paying for the purchase of electric vehicles with bitcoins again, once the mining of this cryptocurrency is less harmful to the environment.
The cost of the world’s leading cryptocurrency has crashed amid record US inflation. According to experts, the current price of bitcoin, which is around $20,000, is not yet at its lowest. Cryptocurrency will continue to get cheaper as inflation rises which will force the US Federal Reserve to raise rates more aggressively. Investors will leave bitcoin, and its price, according to various forecasts, could drop to $8,000-15,000 by the end of the year.