Who is higher up on the Doge poll, Dogemaster or Dogefather?
Elon Musk shared that Tesla sold some Bitcoin this week. Well, to be fair they sold an awful lot of Bitcoin … tens of thousands of coins.
And while Tesla’s announcement last year that they were buying Bitcoin sent prices to the moon, the disclosure Wednesday that they sold 75% of their Bitcoin reserves in Q2 didn’t drastically impact the crypto market, which has been on a tear this week with BTC prices pumping and Ethereum shooting even higher (though still wildly below prices from a couple months ago).
At the end of the day, Tesla was one of the top corporate holders of Bitcoin and Elon Musk was, for a while at least, the currency’s top billionaire hype man. His stock in crypto circles seems to be falling; crypto Twitter was broadly upset by the announcement with some noting that crypto holders should join those shorting the electric car maker’s stock.
Hidden inside this disclosure that the company had offloaded nearly $1 billion worth of Bitcoin was a small admission from Musk that Tesla was holding onto Dogecoin and had not sold any of it. What was unclear from this statement is how much Dogecoin Tesla actually owns. Musk has written on Twitter that he owns it, and Tesla has accepted Dogecoin payments for merchandise on its site for months, but they haven’t disclosed any buys of the cryptocurrency.
I tried to do some napkin math on how much Dogecoin the company may hold this week:
The company disclosed that it currently owns $218 million worth of digital assets after selling $963 million worth of Bitcoin. The bulk of that $218 million is likely its remaining Bitcoin.
Tesla reportedly had around 42,000 Bitcoin heading into the second quarter, so after selling 75% of them, it should have had around 10,500 at the end of the quarter. Now, to determine exactly how much of that total holding is Bitcoin, we’d have to know exactly when the snapshot was taken. It was assumedly taken sometime the last day of June when fiscal Q2 ended, so 1 Bitcoin would have been trading for between $18,750 and $20,300 throughout the day, which at 10,500 coins would mean that around $197 million to $213 million of its total “digital assets” would be in Bitcoin.
Ultimately, Musk’s assertion that Tesla was holding onto its Dogecoin was probably more about keeping in the good graces of that Twitter community that anything else, especially during a time when his Twitter dealings have taken some digs at his popularity among retail investors.
Elon Musk discloses that Tesla owns Dogecoin, but how much does it have?
Despite announcing that Tesla had sold 75% of its Bitcoin holdings in Q2, CEO Elon Musk disclosed in a quarterly investor call that the company also held Dogecoin and had not sold any of those holdings.
“We have not sold any of our Dogecoin; we still have it,” Musk said in the call.
Musk has detailed in the past that he personally owns Dogecoin but has not indicated that Tesla does, though the electric car company has been accepting Doge payments for some merchandise on their website. It’s unclear whether the company has simply been holding on to the tokens used for merch purchases or has made dedicated buys of the dog-themed “joke” cryptocurrency that Musk has repeatedly voiced his support for on Twitter.
The company disclosed that it currently owns $218 million worth of digital assets after selling $963 million worth of Bitcoin. The bulk of that $218 million is likely its remaining Bitcoin.
Tesla reportedly had around 42,000 Bitcoin heading into the second quarter, so after selling 75% of them, it should have had around 10,500 at the end of the quarter. Now, to determine exactly how much of that total holding is Bitcoin, we’d have to know exactly when the snapshot was taken. It was assumedly taken sometime the last day of June when fiscal Q2 ended, so 1 Bitcoin would have been trading for between $18,750 and $20,300 throughout the day, which at 10,500 coins would mean that around $197 million to $213 million of its total “digital assets” would be in Bitcoin.
That napkin math leaves a much smaller amount of room left for Dogecoin holdings, though perhaps still a healthy amount to have been made solely on merchandise sales. Tesla has not disclosed holding any major cryptocurrencies other than Bitcoin and, now, Dogecoin.
https://techcrunch.com/2022/07/23/the-dogefather-sends-his-regards/
