logo
Tesla's Bitcoin Holdings Exceed $1.25 Billion Amid Market Surge

Tesla's Bitcoin Holdings Exceed $1.25 Billion Amid Market Surge

Arabian Post24-05-2025

Tesla Inc.'s Bitcoin holdings have surpassed $1.25 billion, reflecting a significant appreciation in the cryptocurrency's value. According to Arkham Intelligence, the electric vehicle manufacturer currently possesses approximately 11,900 BTC. This valuation underscores Tesla's enduring commitment to Bitcoin, despite previous fluctuations in its digital asset strategy.
The company's initial foray into Bitcoin occurred in early 2021, when it invested $1.5 billion in the cryptocurrency. Subsequently, Tesla began accepting Bitcoin as payment for its vehicles. However, this payment option was suspended in May 2021 due to environmental concerns related to Bitcoin mining's energy consumption. The suspension led to a notable decline in both Bitcoin's value and Tesla's stock price.
In the second quarter of 2022, Tesla sold approximately 75% of its Bitcoin holdings, amounting to $936 million. CEO Elon Musk stated that the sale was driven by the company's need for liquidity rather than a lack of confidence in Bitcoin. Since then, Tesla has incrementally increased its Bitcoin holdings, now totaling around 11,900 BTC.
The recent surge in Bitcoin's value has contributed to the increased valuation of Tesla's holdings. As of May 24, 2025, Bitcoin is trading at approximately $109,058. This price point has bolstered the value of Tesla's Bitcoin assets, aligning with the company's strategic investment approach.
ADVERTISEMENT
Tesla's position in Bitcoin places it among the top corporate holders of the cryptocurrency. Other notable companies with significant Bitcoin investments include MicroStrategy and Galaxy Digital Holdings. These firms have adopted similar strategies, integrating Bitcoin into their corporate treasuries.
The broader corporate adoption of Bitcoin has been influenced by recent regulatory developments. In March 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve. This initiative aims to maintain government-owned Bitcoin as a national reserve asset. The move has sparked interest among various states and corporations, further legitimizing Bitcoin's role in the financial ecosystem.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Strategy Unveils $250M ‘Stride' Offering to Bolster Bitcoin Holdings
Strategy Unveils $250M ‘Stride' Offering to Bolster Bitcoin Holdings

Arabian Post

time32 minutes ago

  • Arabian Post

Strategy Unveils $250M ‘Stride' Offering to Bolster Bitcoin Holdings

Strategy, the enterprise software firm turned cryptocurrency powerhouse, has announced plans to issue 2.5 million shares of its newly minted 10% Series A Perpetual Stride Preferred Stock , aiming to raise $250 million to expand its Bitcoin reserves. The offering, priced at $100 per share, underscores the company's unwavering commitment to Bitcoin as a central asset in its corporate treasury. The proceeds from this offering are earmarked for general corporate purposes, prominently including the acquisition of additional Bitcoin and bolstering working capital. This move aligns with Strategy's aggressive investment approach under the leadership of Chairman Michael Saylor, who has been a vocal proponent of Bitcoin's potential as a long-term store of value. The STRD shares are designed to offer non-cumulative cash dividends at an annual rate of 10%, payable quarterly, contingent upon declaration by the company's board. Notably, if dividends are not declared in a given period, they will not accumulate, and the company is not obligated to compensate for missed payments in the future. This structure provides Strategy with financial flexibility while offering investors a potentially attractive yield. ADVERTISEMENT Strategy's latest offering follows a series of similar financial maneuvers aimed at increasing its Bitcoin holdings. The company has previously issued other classes of preferred stock, including 'Strife' and 'Strike', as part of a broader strategy to leverage financial instruments for cryptocurrency acquisition. These initiatives have collectively contributed to Strategy amassing over 580,000 Bitcoins, valued at approximately $40.61 billion, solidifying its position as the largest corporate holder of Bitcoin. The company's stock performance has been closely tied to Bitcoin's price movements, reflecting the market's perception of Strategy as a proxy for Bitcoin investment. Over the past year, Strategy's shares have experienced significant volatility, mirroring the fluctuations in the cryptocurrency market. Despite this, the company's bold investment strategy has garnered attention from both institutional and retail investors seeking exposure to Bitcoin through traditional financial instruments. While Strategy's approach has been lauded by some for its innovation and alignment with emerging financial trends, it has also faced scrutiny and legal challenges. The company is currently contesting a class-action lawsuit alleging misleading statements regarding its Bitcoin investment strategy. Nevertheless, analysts from firms such as BTIG and TD Cowen have maintained positive outlooks on Strategy, citing the company's strategic positioning and potential for long-term growth. The introduction of the STRD shares represents Strategy's continued efforts to integrate cryptocurrency into its corporate structure and financial operations. By offering a preferred stock with a substantial dividend yield, the company aims to attract investors interested in both fixed-income returns and exposure to the cryptocurrency market. This move further blurs the lines between traditional finance and digital assets, highlighting the evolving landscape of corporate investment strategies.

Markets anxious as 'new cold war' turns hot: Mike Dolan
Markets anxious as 'new cold war' turns hot: Mike Dolan

Zawya

time40 minutes ago

  • Zawya

Markets anxious as 'new cold war' turns hot: Mike Dolan

LONDON - As military spending ramps up around the world and countries rush to ringfence critical industries, political rhetoric appears to have darkened from one sketching geopolitical risks to outright preparation for war. Whether global markets should take more note is a moot point. Investors are already preoccupied with a full-blown trade war, which has aggravated international tensions and is much like the latest ratchet in U.S. steel and aluminium tariffs. But it is not hard to find the 'safety' trades thriving. Gold is less than 2% from a record close set a month ago, having climbed almost 30% so far this year. The Swiss franc , also up almost 10% this year, is pushing higher too. Most obvious of all is the nearly 50% rise in European defence stocks since January. Safety trades that have not barked are just as interesting. The dollar's haven status has been undermined by U.S. trade and tax worries and President Donald Trump's domestic institutional upheavals. And government bonds are pressured precisely because the additional defence spending associated with another generational arms race is exaggerating outsized post-pandemic debt loads even more. Global government debt indexes remain in the red for 2025. "Elevated geopolitical risk affects issuers through multiple transmission mechanisms," credit rating firm Fitch said on Friday, adding it "put upward pressure on defence spending, making fiscal consolidation more challenging for certain sovereigns." WAR DRUMBEAT But at whatever part of the market risk dial you put world war worries, there is no doubt the temperature has risen. Even in the last few days, the language surrounding future major power conflicts has been alarming. Goading Asian allies to match European moves to boost military spending, U.S. Defense Secretary Pete Hegseth warned on Saturday that Chinese military moves to take Taiwan were "imminent". "There's no reason to sugar coat it. The threat China poses is real, and it could be imminent," Hegseth said, adding that any attempt by China to secure Taiwan militarily "would result in devastating consequences for the Indo-Pacific and the world". Beijing reacted angrily and said Hegseth "vilified China with defamatory allegations". But senior U.S. officials have repeatedly briefed that they believe Chinese President Xi Jinping has ordered his military to be ready to invade Taiwan by 2027, even if they say no direct decision appears to have been made. Back in Europe, the drum beat about the need to lift military spending is even louder, more fearful of a threat from Russia. Nearly a trillion euros ($1.14 trillion) of extra German and European-wide defence spending have been earmarked this year. Only last week, Chancellor Friedrich Merz said Germany and its NATO partners were prepared to defend every inch of the alliance's territory. "Anyone who threatens an ally must know that the entire alliance will jointly defend every inch of NATO territory," Merz said on Thursday at a military ceremony in Vilnius to mark the establishment of a German brigade in Lithuania. Britain's strategic defence review on Monday also addressed threats from Russia, nuclear risks and cyberattacks by outlining investment in drones and digital warfare. But the plan also expands the UK's fleet of attack submarines, which are nuclear-powered but carry conventional weapons, and will spend 15 billion pounds ($20.3 billion) by 2029 on replacement of nuclear warheads for its main nuclear fleet. And again, the rhetoric was alarming. "We are being directly threatened by states with advanced military forces, so we must be ready to fight and win," Prime Minister Keir Starmer. 'NEW COLD WAR' TURNS HOT If securing the funding needs political alarm, then maybe that explains some of the high-octane public relations. But there is no shortage of deeply entrenched conflicts raging across the globe and threatening to spill over to varying degrees. Multilateral solutions seem distant as the globe breaks in the blocs. Even with negotiators exploring a ceasefire in Istanbul, Ukraine's forces made an extraordinary move this weekend to attack strategic bomber aircraft at bases deep inside Russia. Israel's devastation of Gaza in reprisal for the 2023 massacres by Hamas shows no sign of ending. More than 30 more Palestinians were killed and nearly 170 injured on Sunday near a food distribution site. Reports continued to circulate last week that Israel is threatening to disrupt nuclear talks between Washington and Tehran by striking Iran's nuclear facilities. And nuclear-armed India and Pakistan have just stepped back from another tense border conflict that marked the fiercest fighting in decades. The expansion of 'hot' conflicts is a mounting concern in political circles, with extraordinary territorial claims thrown into the mix. Trump's public ambition to take over Panama and Greenland have jarred allies, with the latter being part of rivalry over access to rare minerals and also amid strategic plays for the Arctic. Even J.P. Morgan boss Jamie Dimon gets the drift, reportedly telling Barron's last week the United States should not be stockpiling Bitcoin, but instead be stockpiling "guns, bullets, tanks, planes, drones, you know, rare earths." That the world is a dangerous place is not in doubt. A world at war is a different proposition. A worse case scenario is that tariff wars are just the opening act. The opinions expressed here are those of the author, a columnist for Reuters ($1 = 0.8738 euros) (By Mike Dolan; Editing by Kirsten Donovan and Richard Chang)

Dubai: Gold prices slip in early trade after jumping over Dh10 per gram
Dubai: Gold prices slip in early trade after jumping over Dh10 per gram

Khaleej Times

time41 minutes ago

  • Khaleej Times

Dubai: Gold prices slip in early trade after jumping over Dh10 per gram

Gold prices slipped Dh1.5 per gram on Tuesday after jumping over Dh10 on Monday. The 24K variant of the precious metal rose Dh10.5 per gram to Dh406.75 on Monday but slipped to Dh405.25 per gram on Tuesday morning. Meanwhile, 22K, 21K and 18K were trading at Dh375.25, Dh359.75 and Dh308.5 per gram, respectively. Spot gold was trading at $3,361.67 per ounce, down 0.35 per cent. Dilin Wu, research strategist at Pepperstone, said gold extended its choppy trading pattern from mid-April last week, with bearish pressure dominating. 'A series of developments — including shifting White House rhetoric on EU tariffs, resilient US data, changing market sentiment on Treasuries, and legal challenges to tariff legitimacy — have all contributed to the recent price swings... Gold remains range-bound between $3,170 and $3,430, with downward momentum still in control,' said Wu. Looking ahead, she said uncertainty around the legal path of US tariffs and the trajectory of the tax bill will likely keep gold supported on dips, while resilient US data, the Fed's reluctance to shift dovish, and some gold selling from China on Friday may cap upside momentum. Inki Cho, financial markets strategist consultant to Exness, said gold prices were bolstered by renewed trade tensions and escalating geopolitical risks on Monday. 'President Donald Trump announced plans to double tariffs on steel and aluminium imports to 50 per cent starting June 4, a decision that comes amid ongoing legal disputes over current tariffs. Markets responded cautiously, seeking shelter in traditional hedges like gold. Further uncertainty emerged after Trump accused China of violating a recent trade truce, prompting a sharp exchange of claims between the two governments,' he said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store