Bitcoin Holdings: Tesla Reports Financial Statement Containing BTC Holding Status
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The EV manufacturer filed the report last Friday, February 4, detailing: “We continue adapting our investment strategy to meet our liquidity and risk objectives, such as investing in US government and other marketable securities, digital assets and providing product-related financing.” Tesla added:
“The fair market value of our Bitcoin holdings as of December 31, 2021, was $1.99 billion.”
The report explained that Tesla purchased $1.5 billion worth of BTC in January 2021 and later announced the acceptance of BTC as payment for its vehicles in some regions. However, the company suspended this payment solution after a few months, following criticism from environmental conservatives on the carbon impact of BTC. Nonetheless, Tesla told the SEC in October that it could resume accepting cryptocurrency soon.
The company’s financial report showed that its BTC “carrying value” at the end of December was $1.26 billion, which reflected a cumulative impairment of $101 million. Tesla also “had $17.58 billion of cash and cash equivalents” by December 2021.
Key Bitcoin Levels to Watch — February 8
The last 48 hours have been a better-than-expected BTC performance for me from my previous analysis, as the benchmark shattered several price ceilings to break the $45K top in two days, considerably sooner than I anticipated.
However, the benchmark cryptocurrency has now fallen into correction mode as it drops near the $43K base. That said, I expect bulls to put up a good fight at the $43K support, given the combination of supporting factors around that level, including the daily 50 SMA, the $43K support line, and the prevailing market mood.
We should see a goodish bounce off the $43K support in the near term, followed by a retest of the $45K barrier. Successful clearance of that mark should help BTC snap the $46K pivot top over the coming days.
Meanwhile, my resistance levels are at $44,000, $45,000, and $46,000, and my key support levels are at $43,000, $42,000, and $41,000.
Total Market Capitalization: $1.98 trillion
Bitcoin Market Capitalization: $824.9 billion
Bitcoin Dominance: 41.7%
Market Rank: #1
