Will Tesla Soon Accept Bitcoin Payments Again?
In their latest filing with the Securities and Exchanges Commission, electric vehicle maker Tesla have revealed that it has sold no Bitcoin in Q3 and is considering to start accepting the top cryptocurrency for payments once again.
Tesla had enabled Bitcoin for payments earlier in 2021. However after criticism over Bitcoin’s alleged unfavorable carbon footprint, the company decided to stop accepting the top digital asset.
Tesla’s SEC filing revealed:
“We may in the future restart the practice of transacting in digital assets for our products and services.”
The fair market value of our bitcoin holdings as of September 30, 2021 was $1.83 billion. We believe in the longterm potential of digital assets both as an investment and also as a liquid alternative to cash.”
The document also stated:
“In the first quarter of 2021, we invested an aggregate $1.50 billion in bitcoin. In addition, during the three months ended March 31, 2021, we accepted bitcoin as a form of payment for sales of certain of our products in specified regions, subject to applicable laws, and suspended this practice in May 2021.”
After Tesla suspended Bitcoin, CEO Elon Musk hinted that his company would start accepting bitcoin payments again only if a minimum of 50% of the mining network is using renewable energy and showing a commitment to becoming fully renewable.
Exact numbers on the energy usage are not readily available yet. However following China’s crackdown on crypto causing an exodus of the mining industry, they have moved to greener pastures and said goodbye to coal once and for all. These miners are now investing heavily in renewable energy throughout the United States, Europe and South America, while also swooping up excess power supplied to the grid.
With Tesla’s documented endorsement for Bitcoin, it seems only a matter of time, perhaps just weeks, that the company will relaunch Bitcoin payments.
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Author: Peter Siu