In an earnings report, Elon Musk’s company Tesla announced that it sold $936 million worth of bitcoins (BTC) in the second quarter of 2022. Through this sale, the company’s bitcoin holdings were reduced by 75%.
Tesla moves to $218 million worth of BTC
After selling $936 million worth of bitcoins in the second quarter of this year, Tesla, whose CEO is Elon Musk, reduced its bitcoin holdings to $218 million. On Wednesday, Elon Musk explained that he may increase the company’s bitcoin holdings in the future. He said the company sold 75% of BTC holdings because of liquidity concerns due to Covid-related restrictions in China. Elon Musk revealed that the decision to sell Tesla’s bitcoin (BTC) holdings did not inform “verdict on bitcoin“.
You should know thatafter Tesla’s announcement, the price of bitcoin (BTC) fell. from $23,700 to around $23,000. Then it hit $23,400. Currently, this price is hovering around $22,800. However, it managed to cross the $24,000 mark on Wednesday, even if it was short-lived.
Recall that the value of BTC fluctuated between approximately $23,000 and $27,000 during January 2021. Then, in November of the same year, it reached an all-time high of approximately $69,000. Perhaps such a rally is still being prepared!
Electric car manufacturer Tesla and bitcoin (BTC)
The electric car manufacturer bought Tesla $1.5 billion worth of bitcoins at the beginning of 2021. In the first quarter of 2021, it sold $272 million of those holdings. He was then left with around $1.33 billion in BTC, according to prices at the time. That said, after adding bitcoin (BTC) to its holdings, Tesla announced that it wants to allow its customers to pay for their cars in this currency “subject to applicable laws and initially on a limited basis“.
Finally, in March 2021, the company announced that it was accepting bitcoin (BTC) payments. However, it suspended them in May, with Elon Musk explaining on Twitter that the company “concerns about the increasing use of fossil fuels for bitcoin mining and transactions“.
Musk had made it clear that the electric car maker would not be parting with any of its bitcoins. He also said that BTC could be reconsidered as a payment method by Tesla if miners switched to more sustainable energy sources.
Electric car maker Tesla has sold 75% of its BTC holdings. So his bitcoin holdings are now at $218 million. According to Elon Musk, the sale does not signal a verdict on the flagship cryptocurrency. You should know that Tesla’s income fell in the second quarter: its gross profits ($4.2 billion) were down 22.5% from the first quarter.
Source: The Block
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and share my pen knowledge related to this ecosystem.