Tesla’s financial report this week disclosed that the worth of its digital assets (primarily Bitcoin) amounts to $1.24 billion. At first glance, this is a quite remarkable figure. After all, the current price of Bitcoin is at its highest point in history. As this is being written, Bitcoin is priced at $116,043, representing nearly a 75% rise over the past year alone. Just two days ago, Bitcoin reached an unprecedented peak of $120,000.
However, Tesla’s misstep was in selling the majority of its Bitcoin assets far too early. So while the $1.24 billion amount is not insignificant, Tesla has forfeit nearly $4 billion in what would have been pure profit had it decided against selling a few years prior. It’s difficult to blame Tesla, though. Bitcoin is highly unpredictable and resembles a speculative stock more than a practical digital substitute for currency. In other words, expecting Tesla to sell at precisely the perfect moment is unrealistic.
