Tesla sees Bitcoin as an important financial tool for accessing cash quickly. During the company’s earnings meeting on Monday, the company’s CFO “coin master” Zach Kirkhorn stated that Tesla relationship with Bitcoin was not a branching.
Instead, the automaker firm believes that Bitcoin is long-lasting despite fluctuating market movements.
Kirkhorn said in the company’s quarterly earnings call that Tesla invested $ 1.5 billion in Bitcoin this quarter, and then reduced its position by 10 percent. He added that this sale had a “positive effect” of $ 101 million on the profitability of the company in the first quarter.
As is known, Tesla also allows customers to make vehicle deposits and final vehicle purchases using Bitcoin.
Tesla is reportedly turning to Bitcoin as a place to store and access cash, while providing a better return on investment than more traditional central bank-backed safe havens. Of course, the higher returns provided by the floating digital currency come with higher risk.
Stating that Tesla closely monitors the digital currency, Kirkhorn pointed out that there are many reasons to be optimistic.
“You know, if you think from a corporate treasury perspective, we are quite satisfied with how much liquidity there is in the Bitcoin market. Our ability to establish our first position has been very fast. When we made the sale later in March, we were able to do this very quickly. And since we think about global liquidity for business in risk management, being able to enter and exit the market is something I think is extremely important to us. ” made statements.
As Tesla corrected its position in March, Kirkhorn added that the company’s goal is to retain what it has for the long term and to continue to accumulate Bitcoins from transactions that its customers make while purchasing vehicles.