Tesla (TSLA) sent shock waves across the financial markets on Monday after a filing with the US Securities and Exchange Commission confirmed that the electric vehicle maker added Bitcoin (BTC) to its balance sheet.
Tesla’s most recent Form 10-K filing for the fiscal year ended December 31, 2020 shows an allocation of $ 1.5 billion to Bitcoin. As bitwise researcher David Lawant points out, Tesla is exposed to Bitcoin It represents approx. 7.7% of the gross cash position.
According to the most recent 10K filing, @ Tesla had cash and cash equivalents of $ 19.4 billion gross or $ 98 billion net of debt and finance leases.
Using these numbers as a reference, $ 1.5 billion #Bitcoin This corresponds to an allocation of 7.7% to the gross cash or 15.1% to the net cash. https://t.co/FgRpzRcXBh pic.twitter.com/tDVqJGtj2Q
– David Lawant (@dlawant) February 8, 2021
Based on the most recent 10,000 filing, @Tesla had cash and cash equivalents of $ 19.4 billion (gross) or $ 98 billion (minus debt and finance leases).
Using these numbers as a reference, $ 1.5 billion in #Bitcoin equates to an allocation of 7.7% in gross cash or 15.1% in net cash.
Derive these numbers from Tesla’s cash and cash equivalents, which had gross income of $ 19.4 billion or $ 9.8 billion less debt and finance leases at the end of 2020.
With the purchase of Bitcoin, Tesla is at the top of the list of corporate treasuries. Only one other company, MicroStrategy, bought more digital assets within its strategic reserves.
News of Tesla’s stake in the Bitcoin market made prices soar on Monday. As Cointelegraph reported, The BTC price hit a high of nearly $ 45,000, slightly beating its previous high. Bitcoin’s market cap exceeded $ 800 billion for the first time.
Tesla plans to not only include BTC on its balance sheet, but also to accept the digital asset as a means of payment. In addition, the BTC that you receive will not be settled in cash, but will be added to your balance.
Tesla is leading the introduction of Bitcoin at a crucial point in the bull market. Given Elon Musk’s propensity to move markets, Tesla’s new exposure to Bitcoin could accelerate retail adoption in the short term.
Bitcoin has also piqued the interest of large companies. Last week, Microstrategy’s Bitcoin Buying Webinar had over 1,400 subscriptions.