Tesla’s Bitcoin Blunder: How Selling at $20K Could Haunt Elon Musk’s Crypto Empire Forever
Tesla could have made billions if it had held onto Bitcoin (BTC) instead of selling the bulk of it when prices crashed in 2022.
In early 2021, Tesla acquired 43,200 Bitcoin worth $1.5 billion as part of its treasury diversification strategy, data from BitcoinTreasuries.net shows.
Soon after, the company began accepting the asset as payment for its cars, but then suspended the option due to environmental concerns related to Bitcoin mining’s energy usage.
In March of that year, Elon Musk’s electric vehicle company made its first Bitcoin sale, offloading 4,320 BTC when Bitcoin was trading above $58,000. Bitcoin reached a high of $61,500 during the 2021 cycle, so Tesla’s initial sale was not entirely unreasonably timed.
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