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SEC Filing Reveals, Tesla Believes in the Potential of Digital Assets

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Tesla, the electric car firm, has taken a more definitive stance after months of contradictory messages from its CEO, deciding to leave the door open for future digital asset investments, according to a recent SEC filing. 

“We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash,” Tesla’s quarterly report was filed with the Securities and Exchange Commission.

Tesla reported $1.26 billion in digital asset holdings in its first-quarter financial report last month, nearly unchanged from its holdings at the end of the fourth quarter in 2021, when it made it’s first, and so far only, $1.5 billion bitcoin purchase. According to the document, the fair market value of its digital asset holdings as of March 31, 2022, is $1.96 billion.

Elon Musk, the CEO of Tesla, has had a public love-hate relationship with cryptocurrencies for over a year.

Musk declared on Twitter in March 2021, a month after Tesla purchased bitcoin, that the firm would accept bitcoin as a form of payment. Musk reneged on his prior remark less than two months later, saying in a tweet that Tesla would not take bitcoin owing to the cryptocurrency’s environmental impact.

Musk clarified in July 2021 that if bitcoin mining became more sustainable, he might examine incorporating it as a payment method. In an SEC filing in October, the corporation acknowledged that it was open to crypto payments.

Musk has long been interested in a separate cryptocurrency known as Dogecoin. Tesla now accepts Dogecoin payments for some items on its online store, while no revenue from Dogecoin payments was reported in the company’s quarterly report.

“As with any investment and consistent with how we manage fiat-based cash and cash-equivalent accounts, we may increase or decrease our holdings of digital assets at any time based on the needs of the business and our view of market and environmental conditions,” the quarterly filing said.