The Crypto Roundup: 27 April 2021 | CryptoCompare.com

By April 27, 2021Bitcoin Business
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Tesla sold 10% of its bitcoin holdings in the first quarter of 2021 for $272 million. In February Tesla purchased $1.5 billion worth of bitcoin, which sent the price surging to all-time highs. Tesla CFO Zach Kirkhorn said that they invested in bitcoin to earn yield on its excess cash reserves in a low-interest-rate economy.

In a recent interview with Time Magazine PayPal CEO Dan Shulman has said their crypto offering has exceeded all expectations in the level of demand it has received from users. He also told Time Magazine digital asset innovation will lead to more changes in the financial system over the next 5-10 years than what has happened in the last two decades.

JPMorgan Chase is preparing to offer an actively managed bitcoin fund to its clients as soon as this summer. Institutional digital assets firm NYDIG is thought to be the custody provider according to CoinDesk sources. In March JPMorgan issued its first crypto-related investment product which tracked the performance of bitcoin proxy stocks such as MicroStrategy. The proposed bitcoin fund would be its first offering directly tracking the price of bitcoin.

Top stories in the Crypto Roundup today:

  • Tesla Sells 10% of its Bitcoin Holdings for $272 Million
  • PayPal Shocked by the Huge Demand for their Crypto Offering
  • JPMorgan to Offer Bitcoin Fund This Summer Say CoinDesk Sources
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Tesla Sells 10% of its Bitcoin Holdings for $272 Million

Tesla sold 10% of its bitcoin holdings in the first quarter of 2021 for $272 million. In February Tesla purchased $1.5 billion worth of bitcoin, which sent the price surging to all-time highs. Tesla CFO Zach Kirkhorn said that they invested in bitcoin to earn yield on its excess cash reserves in a low-interest-rate economy. Tesla customers now have the option to pay with bitcoin and Tesla will continue to accumulate this bitcoin.

In the earnings call Kirkhorn said “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."

In a recent interview with Time Magazine PayPal CEO Dan Shulman has said their crypto offering has exceeded all expectations in the level of demand it has received from users. He also told Time Magazine digital asset innovation will lead to more changes in the financial system over the next 5-10 years than what has happened in the last two decades.

“Ten years from now, you will see a tremendous decline in the use of cash. All form factors of payment will collapse into the mobile phone. Credit cards as a form factor will go away, and you will use your phone because a phone can add much more value than just tapping your credit card,” he said.

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