Tesla (TSLA) sent shock waves across the financial markets on Monday after a filing by 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’s BItcoin exposure accounts for around 7.7% of its gross cash position.
According to the latest 10K 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% to gross cash or 15.1% to net cash. https://t.co/FgRpzRcXBh pic.twitter.com/tDVqJGtj2Q
– David Lawant (@dlawant) February 8, 2021
He derives 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, through 2020.
With Tesla’s Bitcoin purchase, it tops the list of corporate treasuries. Only one other company – MicroStrategy – has bought more digital assets within its strategic reserves.
News of Tesla’s participation in the Bitcoin market caused prices to rise on Monday. As Cointelegraph reported, BTC price peaked near $ 45,000, slightly beating its previous high. Bitcoin’s market cap exceeded $ 800 billion for the first time.
In addition to including BTC on its balance sheet, Tesla plans to accept the digital asset as a payment method. In addition, the BTC received is not liquidated for cash, but is added to its balance sheet.
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 newfound Bitcoin exposure could accelerate retail adoption in the short term.
Bitcoin has also piqued the interest of large companies. Microstrategy’s Bitcoin Buying Webinar recorded over 1,400 registrations last week.