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Tesla doesn’t change faith in Bitcoin, keeps $1.26 billion unchanged for two consecutive quarters

Tesla’s Bitcoin holdings were flat at $1.26 billion for the second consecutive quarter, the electric car giant said in its quarterly earnings report on Wednesday.

During both the first and fourth quarters of last year, the company did not buy or sell any BTC, nor did it record any decline in the value of its holdings because of the underlying Bitcoin price. unchanged from the end of the previous quarter.

During the third quarter of last year, Tesla did not add or decrease its Bitcoin holdings but was required to report a loss of $51 million to reflect the drop in the price of the cryptocurrency.

According to accounting rules for digital assets, if an asset’s price falls in a quarter, a company must report a loss. But if the price increases, it is not reported as profit on the balance sheet unless the asset is sold.

In February of last year, the company announced that it had purchased $1.5 billion worth of Bitcoin. Then in Q1 of the same year, the company cut its Bitcoin position by 10%, a sale that boosted that quarter’s earnings by $272 million. Tesla did not buy or sell any Bitcoin in Q2 of that year.

Overall, Tesla’s adjusted first-quarter earnings per share came in at $3.22, compared with the $2.26 analysts expected, according to FactSet. Revenue came in at $18.8 billion versus $17.85 billion expected.

Tesla’s stock price jumped 3.6% to $1,012 in after-hours trading Wednesday. Shares have fallen nearly 3% since the start of the year.

Tesla CEO Elon Musk recently made headlines with an offer to buy Twitter for $43 billion to make the social media platform private.