Tesla's Bitcoin investment has lost more than $500 million

According to foreign media reports, Tesla has lost more than $500 million in bitcoin investment.

In early 2021, Tesla invested $1.5 billion in Bitcoin.A few months ago, Tesla’s bitcoin holdings appreciated to $2 billion.However, the cryptocurrency market is changing rapidly.Several major cryptocurrencies have seen sharp declines in value amid a wide-ranging market downturn.

Tesla’s bitcoin investment is now worth $905 million, meaning Tesla has lost nearly $600 million, according to bitcoin data-tracking site Bitcoin Treasuries.However, Bitcoin only accounts for 10% of Tesla's cash position and 0.1% of its total market capitalization.

Image credit: Bitcoin Treasuries

Shortly after investing in bitcoin, Tesla began accepting bitcoin as a payment method for new cars.However, a few days later, Tesla removed the Bitcoin payment option.“We are concerned about the rapid increase in the use of fossil fuels in Bitcoin mining and trading, especially coal, which emits the worst of all fuels,” Tesla said.

When Tesla first announced its investment in Bitcoin, many members of the Tesla community had similar concerns, and many were angry that the company didn’t think about it in the first place.However, at the time Tesla said it would not sell its bitcoin holdings and planned to resume accepting bitcoin payments once the energy mix for bitcoin mining showed a higher proportion of renewable energy.

Tesla CEO Elon Musk has also invested in Bitcoin.Musk also said he thinks Tesla will resume accepting bitcoin payments because he sees an improvement in the energy mix for bitcoin mining.

Recently, Tesla also used the Megapack battery energy storage system at a bitcoin mine in Texas, directly helping the mine improve the renewable energy mix in bitcoin mining.