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Tesla Holds Bitcoin with Diamond Hands

Elon Musk Tweeted recently that Tesla has only sold 10% of its Bitcoin and will begin accepting it again once mining moves to a higher percentage of renewable energy. Tesla is still holding 90% of its Bitcoin!
Tesla Bitcoin Diamond Hands

Tesla has diamond hands

"Diamond hands" is a term of holding an asset without selling it, even when its value goes below what you paid for it.

In the above chart, you can see that Bitcoin has been on a volatile ride the past 7 days, dipping close to $30,000. This is lower than what I believe Tesla paid for its Bitcoin. As someone who invests, it can become a little stressful when assets you have purchased start to drop below what you paid for them. But Tesla appears to have weathered that storm and not sold anymore of its Bitcoin.

What will Teslas Bitcoin be worth in the future?

There are those who think Bitcoin will reach $105,000 and eventually $500,000. If this holds true, Tesla buying its Bitcoin for around $32,000 is going to look like one of the best moves a company has ever made in history. Here's a video of Cathie Wood, whose fund invests heavily in Tesla, talking about her long term price prediction for Bitcoin.

If what she says is correct and if Bitcoin reaches $500,000 in around 10 years, then let's assume:

A $32,000 purchase price
46,875 Bitcoin at purchase
10% was sold, making the total Bitcoin now ~ 42,100
We take the 10 year target of Bitcoin and multiply it by 42,100

We get: $21,050,000,000 (That's just over 21 billion dollars). That's an incredible return and if this ends up happening, Tesla not selling through the Bitcoin volatility will indeed be diamond hands.

When will Tesla start to accept Bitcoin again?

When will Tesla start accepting Bitcoin for its cars? As of now, it's been about a month since Elon Musk Tweeted that Tesla was suspending Bitcoin purchases and it really comes down to this Tweet:

The data from cbeci.org is going to have to show consumption toward renewable energies and not fossil fules. Or some other data set is going to have to prove this before Tesla goes back to accepting Bitcoin. The best we have is the above Tweet from Elon Musk stated that the trend must be 50% renewable energy and showing that this will increase in the future:

Final thoughts

Tesla buying Bitcoin has certainly caused a lot of people to question Tesla and demand that they sell it. But to this point, Tesla has not sold any Bitcoin. Should they continue to hold? Will Bitcoin reach $500,000 in the future? Will it move toward more renewable energy?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow his Tesla news coverage on Torque News.

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