- The well-known business magnate and CEO of Tesla said they have sold Bitcoins worth $936,000,000.
- The reason behind this huge sale is to raise the liquidity of cash in the electric car manufacturing industry.
- Elon musk revealed this in the second-quarter earnings.
‘Reason’ Behind The Dump
As per the report, Tesla has stated that they were unclear about the Covid-19 lockdowns in China. The lockdown in China was uncertain and it is important to raise the amount of their cash in the market. Hence, they have sold off their holdings over Bitcoins that are worth around $1 billion.
This was done at the end of the second quarter, which ends on June 30th. According to Musk, “At the end of Q2, we converted roughly 75% of our Bitcoin investments into fiat cash. This conversion counted $936M of cash to our balance sheet.”
The total amount of Bitcoin that Tesla currently owned is $218 million. As per the report presented on June 30th.
In his words, Musk reveals that they will increase their holdings of Bitcoins in the upcoming years. While their Dogecoin (DOGE) holdings are still unchanged.
He said, “We are open to extending our Bitcoin holdings in the future. So it should not be taken as some judgement on Bitcoin. We were concerned about the prevailing liquidity of the company. As given Covid-19 shutdowns in China. And we have not sold any of our Dogecoin.”
He further added that the crypto assets are ‘sideshow to the sideshow.’ And Tesla’s objective is to rev the source of sustainable energy. Cryptocurrency is a sideshow to the sideshow. Cryptocurrency is not something we think about a lot.”
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Response On The Crypto Market
As Tesla has sold 75% of BTC holdings resulted in the crypto crash. Many cryptocurrencies are dropping from their price. It is assumed another meltdown of the crypto market.
On the other hand, Tesla also restricted cryptocurrencies as a mode of payments. Here, Musk cites environmental harm. He then said that the electric car maker will not trade any Bitcoin and plans to use them for dealings as soon as mining moves to more sustainable energy.
After this decision of Tesla was unveiled, the crypto currencies may lose their values. As a result of this may make financial loss in the crypto market.
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