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Tesla’s $1.5B Bitcoin Buy Amounts to 15% of The Company’s Net Cash Holding

Following the news about Tesla’s billion-dollar investment in bitcoin, analysts reveal that the Elon Musk-led company invested around 15% of its net cash into the flagship cryptocurrency.

  • As reported by CryptoPotato earlier today, Tesla made headlines across the crypto verse after it invested $1.5 billion into bitcoin, as revealed in a 10k form filing with the U.S. SEC.
  • Meanwhile, David Lawant, a Research Analyst at Bitwise Asset Management, tweeting shortly after the bitcoin investment, noted that the company put in up to 15% of its cash equivalent in BTC.
  • According to Lawant, the SEC filing showed that Tesla has $19.4 billion in gross cash or $9.8 billion in net cash.
  • With the above figures, the Bitwise research analyst noted:

“Using these figures as a reference, $1.5 billion in #Bitcoin represents an allocation of 7.7% on gross cash or 15.1% on net cash.”

  • Also, Tesla’s BTC investment positively affected the price of bitcoin, with the BTC price reaching a new all-time high of $44,000.
  • There were speculations back in December 2020 about whether Tesla would join the bitcoin bandwagon when Elon Musk asked Microstrategy CEO Michael Saylor questions about BTC.
  • At the time, the MicroStrategy CEO advised Musk to convert the TSLA balance sheet from USDT to BTC.
  • Saylor, in a later interview, stated:

“If Tesla puts $1 billion dollars (in BTC) they will double their money within 12 months. If they put $2 billion in, they will probably generate a $10-billion gain. By the way, anybody could do it. If you’re a billionaire hedge fund guy, you put a billion into Bitcoin, just put it out on the wire and say you did it.”


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About The Author

Anthonia Isichei

Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.

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