Crypto influencer Ash WSB recently tweeted that he bought so much “BTC because Tesla holds billions of dollars in Bitcoin.”
He gave the logic that if a big company like Tesla has invested in billions of dollars worth of Bitcoin, then they must have thought something before investing. And if the price of Bitcoin goes down, then they will lose millions as compared to his loss of thousands.
At the end of the tweet, he praised himself, saying, “This is the reason why I am the greatest trader of all time.”
I bought so much BTC coz Tesla
holds billions worth of #Bitcoin
This means they will lose millions
if i loose few thousands.
My fundamentals are clear.
This is the Reason why I am the
greatest trader of all time.
— Ash WSB (@ashwsbreal) April 21, 2022
How much worth of Bitcoin does Tesla hold?
Tesla recently reported to the SEC that it had roughly $2 billion in bitcoin on hand at the end of last year.
In 2021, the corporation invested $1.5 billion in bitcoin. Toward the end of the year, the cryptocurrency was trading at over $46,000.
Concerns over a regulatory crackdown in China caused it to fall as low as $30,000 in July, but, by early November, it had risen to an all-time high of nearly $68,000. Coins were hovering around $43,000 as of Monday morning.
Over environmental concerns, Tesla stopped accepting bitcoin as a form of payment in May.
When Tesla buys or sells bitcoin, it doesn’t consider it a mark-to-market asset, which means that the currency only impacts profits when Tesla does so. As long as Tesla hasn’t sold any of its bitcoin assets, the decline in value should have no effect on profits.