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Bitcoin surpasses all-time highs, Elon Musk’s Tesla and SpaceX make big profits
According to blockchain analytics firm Arkham Intelligence, the crypto wallets of Elon Musk’s companies have been located. Arkham cross-referenced financial reporting with on-chain activity to identify the massive wallets.
According to Arkham, Tesla Inc. and SpaceX own a combined total of around 19,800 Bitcoin. The stash is split across many wallets: Tesla holds around 11,500 BTC across 68 addresses, while SpaceX holds around 8,300 tokens across 28 wallets.
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The tokens are worth over $1.4 billion after Bitcoin hit new all-time highs and surpassed the $72,000 level.
This stock represents a large profit for companies. SpaceX is $276 million in investment profits, while Tesla has nearly $500 million in earnings. While these amounts are small compared to the profits from the companies’ operations, they are considerable when compared to other investments.
Tesla began purchasing Bitcoin in February 2021, achieving an unprecedented achievement investment of 1.5 billion dollars in the token. This was a contributing factor to the Bitcoin rally observed less than a month later, when Bitcoin reached all-time highs.
Although Tesla has achieved huge returns from its investment in Bitcoin, it has made some premature sales. For example, it sold nearly 30,000 Bitcoins in June 2022, as the company needed cash and Musk wanted to demonstrate Bitcoin’s ability to handle large transactions. At the time of the sale, Bitcoin was trading for around $25,000, well below current prices.
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Instead, he sold about 10% of his total holdings after Bitcoin hit new all-time highs of over $60,000 in March 2021. The sale of 4,320 Bitcoins generated over $250 million in cash.
Musk and Tesla began accepting Bitcoin in early 2021, around the same time they made their initial $1.5 billion investment. However, in May 2021, Musk has stopped purchasing Tesla vehicles with Bitcoin.
“Tesla has suspended vehicle purchases using Bitcoin. We are concerned about the rapid increase in the use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. The cryptocurrency It’s a good idea on many levels and we believe it has a promising future, but this cannot come at a high cost to the environment.”
The story continues
So, Musk is a firm believer in cryptocurrencies, but he doesn’t see a way to use tokens that consume a lot of energy and are potentially harmful to the environment. Bitcoin is proof-of-work (PoW), meaning it allows network participants to use computing power to compete for the ability to process transactions. This results in huge amounts of energy consumption.
While Musk may not use Bitcoin transactionally, it has certainly paid off as an investment.
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This article Bitcoin surpasses all-time highs, Elon Musk’s Tesla and SpaceX make big profits originally appeared on Benzinga.com
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