Tesla did not buy or sell bitcoins throughout 2023, maintaining a cryptocurrency position worth $184 mln at net value, according to its financial report. What is the reason for this? For many, the actions of Tesla and Musk serve as a market signal. Why has the company decided to take a wait-and-see approach?
There are several possible reasons why Tesla has not sold its remaining bitcoins:
1. Elon Musk still believes in the long-term potential of bitcoin and cryptocurrencies. So, although Musk sold some of his bitcoins in 2022, he wants to retain some as a long-term investment.
2. Tesla expects to resume accepting Bitcoin as payment for its EVs at some point in the future. Therefore, the company still lists some bitcoins on its balance sheet in order to be prepared for such a scenario.
3. Current market conditions are not favorable for selling. Tesla can wait for the bitcoin price to recover in order to avoid taking losses and possibly recover some of them after the halving event.
Thus, Tesla's current pause in BTC transactions may be due to a confluence of strategic considerations and the aspiration to choose a more favorable time for selling in the event of such a decision. Overall, the company has not abandoned its crypto assets.