Tesla’s involvement with Bitcoin has continued piqued the interest of cryptocurrency and traditional financial markets. As the third quarter of 2023 unfolded, Tesla’s stand on Bitcoin remained unchanged, while its investment in artificial intelligence (AI) saw a notable upswing.

Unwavering Tesla’s Bitcoin holdings

Tesla’s third-quarter financial disclosures revealed a steady hold on its Bitcoin (BTC) assets, with no purchases or sales reported in this period. 

The company’s BTC holdings, which currently stand at 9,720 BTC, are valued at about $275.4 million, considering the current (19th Oct 2023) market price of Bitcoin at $28,300 per unit.

This holding pattern has been consistent for five consecutive quarters, displaying a cautious yet unwavering approach toward the digital asset since the significant sell-off in 2022.

A recap on Tesla’s journey with Bitcoin

Tesla’s journey into the cryptocurrency realm began in February 2021, under the leadership of Elon Musk, when it invested $1.5 billion into Bitcoin. This investment saw Tesla’s Bitcoin treasury peak at $1.5 billion, accumulating over 43,000 bitcoins. 

However, environmental concerns regarding Bitcoin’s mining operations led to a change of heart for Musk. In a bid to address these concerns, Tesla sold off a significant portion of its Bitcoin holdings in two major tranches in 2021 and 2022, reducing its Bitcoin assets considerably.

Also read: Is there a silver lining to the Tesla BTC sale worth an estimated $936 million? – What does this mean for BTC?

Tesla’s financials amid crypto endeavors

The Q3 financial results painted a mixed picture for Tesla. While the company saw a revenue upsurge to $23.4 billion, marking a 13% increase compared to the previous year, it fell short of analysts’ expectations. 

The earnings per share (EPS) stood at $0.66, lower than the anticipated $0.74, reflecting a nearly 37% drop from the previous year. Despite these financial hurdles, Tesla’s production targets 2023 remain steady at 1.8 million vehicles.

Tesla’s support for Artificial Intelligence initiatives

Parallel to its cryptocurrency endeavors, Tesla has significantly ramped up its investments in artificial intelligence. The Q3 disclosures revealed a twofold increase in Tesla’s computing capacity earmarked for AI initiatives. 

The company transitioned the training framework for its humanoid robot, Optimus, from conventional coding to AI-based methodologies. This transition is powered by one of the world’s largest supercomputers commissioned by Tesla to accelerate its AI development pace. 

The quarterly spending on research and development soared to $1.16 billion, a 58% hike from the previous year, attributed to various projects, including Cybertruck, AI enhancements, and other R&D efforts.

What does this mean for the crypto community & crypto markets?

Ever since Elon Musk made his first public investment in digital assets, the crypto community has been closely watching his, alongside his companies’ crypto decisions due to the past impact his crypto engagements have had on Bitcoin and Memecoin prices. 

Despite the earlier sell-offs, Tesla’s persistent hold on a substantial Bitcoin stack fuels speculations on a possible resumption of Bitcoin payments in the future, an initiative once promised by Musk. 

Additionally, this might indicate that Tesla still sees value in digital assets, particularly Bitcoin, as a long-term investment. It also suggests that Tesla is confident in the future of Bitcoin despite the environmental concerns surrounding its mining and the company’s previous divestment of its BTC holdings.

As for Elon Musk, this indicates that he is still committed to Bitcoin and its potential as a hedge against fiat currencies. However, it is worth noting that Musk has been known to be unpredictable in his statements and actions regarding Bitcoin, and his personal views on the cryptocurrency may not necessarily reflect those of Tesla as a company.