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In a week that already saw the crypto market rattled by false reports of a Bitcoin spot ETF launch,Elon Musk and Tesla are gearing up to deliver yet another shockwave. Today, the electric car giant is set to unveil its Bitcoin holdings in itsearnings report for the third quarter of 2023, an event with profound implications for the world of digital assets.

Tesla'sBitcoin adventure began with a bang two years ago when the company invested a billion and a half in dollars in the cryptocurrency and announced plans to accept Bitcoin as payment for its vehicles, a move that significantly boosted Bitcoin's market value at the time.

Fast forward to the second quarter of 2023, Tesla disclosed that it had neither bought nor sold Bitcoin, maintaining a consistent digital asset balance of $184 million.

Importantly, the price of Bitcoin fell from about $30,600 to $28,500 during this time. Current accounting rules do not allow Tesla to recognize a profit as long as the assets remain unsold. However, in the event of a sharp drop in Bitcoin prices, accounting rules would allow the valuation of these assets to be reduced.

It is noteworthy that Tesla's last Bitcoin transaction took place in the second quarter of the previous year, when the company offloaded more than 30,000BTC, equating to roughly 75% of its holdings, for a staggering $936 million.

As the crypto community eagerly awaits Tesla's latest Bitcoin holdings update, the entire industry braces itself for another major shift, one that could influence not only Bitcoin's valuation but also the sentiment surrounding digital assets in general.

About the author

Gamza Khanzadaev

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.

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Elon Musk's Tesla to Unveil Its Bitcoin (BTC) Holdings Today - U.Today