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Bitcoin Breaks All-Time Highs, Elon Musk’s Tesla and SpaceX Make Big Profits
The crypto wallets of Elon Musk’s companies have been located, according to blockchain analytics firm Arkham Intelligence. Arkham cross-referenced financial reporting with on-chain activity to locate the massive wallets.
Tesla Inc. and SpaceX own a combined total of around 19,800 Bitcoins, according to Arkham. The reserve is spread 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 reserve presents a major benefit for businesses. EspaceX is at $276 million in profits on the investment, while You’re here has nearly $500 million in winnings. Although these amounts are small compared to companies’ operating profits, they are considerable compared to other investments.
Tesla began purchasing Bitcoin in February 2021, creating an all-time high. investment of 1.5 billion dollars in the token. This was a contributing factor to the Bitcoin rally seen less than a month later, where Bitcoin reached all-time highs.
Although Tesla saw huge returns on its Bitcoin investment, it made some ill-timed sales. For example, he sold nearly 30,000 Bitcoins in June 2022, because the company needed liquidity and Musk wanted to show Bitcoin’s ability to handle large transactions. Bitcoin was trading at around $25,000 at the time of the sale, well below current prices.
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Conversely, he sold about 10% of his total holdings after Bitcoin hit a new all-time high 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 the initial $1.5 billion investment. However, as of May 2021, Musk Halted Tesla Vehicle Purchases With Bitcoin.
“Tesla has suspended purchases of vehicles using Bitcoin. We are concerned about the increasing use of fossil fuels for Bitcoin mining and transactions, particularly coal, which emits the worst emissions of all fuels. currency is a good idea on many levels and we think it has a promising future, but it cannot come at a high cost to the environment.
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So, Musk strongly believes in crypto, but he doesn’t see a way to use tokens that consume a lot of energy and are potentially damaging 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.
Even though Musk doesn’t use Bitcoin transactionally, it has certainly paid off as an investment.
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