Tesla (TSLA) has sold some of the Bitcoin holdings that it purchased in Q1 for $272 million in proceeds, as reported in its earnings report. The company purchased $1.5 billion worth of Bitcoin back in February and now holds over $2.48 billion worth of the cryptocurrency even after its sale as the crypto has appreciated so much. 

In the reports 'Statement on Cash Flows' section, the company lists "proceeds from sale of digital assets" as $272 million. 

The report details the sale of some of the company's Bitcoin holdings further:

"Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in "Restructuring & Other" line) were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items. Model S and Model X changeover costs negatively impacted both gross profit as well as R&D expenses."

Though Tesla had sold $272 million worth of Bitcoin, the company only net $101 million of profit after other debts or obligations it used the money for. The report also noted that cash had decreased in Q1 due to its large purchase of Bitcoin.

"Quarter-end cash and cash equivalents decreased to $17.1B in Q1, driven mainly by a net cash outflow of $1.2B in cryptocurrency (Bitcoin) purchases, net debt and finance lease repayments of $1.2B, partially offset by free cash flow of $293M."

Many on Twitter have begun to blast Elon Musk and Tesla over the company's decision. One prominent account in the crypto Twitter community known as Bitcoin Archive said, "Tesla made more money trading #Bitcoin than trading cars."

The Bitcoin Archive Twitter account also made a comparison between Elon Musk and Marcus Brutus, the man who betrayed Julius Caesar. 

https://twitter.com/BTC_Archive/status/1386799299690995713

https://twitter.com/BTC_Archive/status/1386799299690995713

Dave Portnoy, the founder of Barstool Sports, said, "So am I understanding this correctly?@elonmusk buys #bitcoin. Then he pumps it. It goes up. Then he dumps it and makes a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don’t be last 1 #HODLing the bag."

Elon countered by saying, "No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet."

Elon's tweet was the first time the Tesla CEO publicly admitted that he personally held Bitcoin. 

Others said it was a smart move and that it made sense for the company to take some of its initial investment money out and put it to use elsewhere. 

"People are mad that Tesla sold 272M worth of Bitcoin, for a profit of 101M. They still have well over a billion left. Smart move. Take your initial investment off the table with some profit, let the rest ride. They're playing with the house's money," said Scott Melker, a well-known crypto podcaster.

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