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The majority of Tesla’s bitcoin holdings have been sold.
The Elon Musk-founded electric vehicle business currently only owns the benchmark cryptocurrency in the amount of $218 million, down from a remarkable $1.2 billion.
How much does Tesla hold?
Tesla stated that it sold $75% of its bitcoin holdings in the second quarter, adding $936 million to its balance sheet, in an after-market financial report released on Wednesday.
Tesla claimed that “bitcoin impairment” had a negative impact on its financial performance.By selling BTC earlier in the quarter, the EV giant avoided a significant impairment charge at an average price of about $29,000 per coin.
Just $218 million in BTC were held by the corporation as of June 30, down from over $1.26 billion in March.
Musk to purchase bitcoin
In a previous earnings call, Elon Musk claimed that Tesla had sold “a bunch” of its Bitcoin holdings in order to boost its cash position in light of the uncertainties surrounding China’s lockdowns.
Investors questioned Musk about whether he saw bitcoin as a long-term investment. Musk responded that Tesla’s main objective is “to expedite the arrival of sustainable energy,” and that bitcoin is only a “sideshow to the sideshow.”
Bitcoin and Musk and Tesla’s relationship have been difficult. When the CEO of Tesla put bitcoin in his Twitter bio in January 2021, he began to really promote it.
Days later, Tesla declared it will take bitcoin as payment for its vehicles after purchasing the most valuable cryptocurrency for $1.5 billion.
Then, in May of last year, Musk announced that Tesla will no longer take bitcoin as payment due to worries about the energy use associated with BTC mining.
Tesla is “absolutely open to growing Bitcoin holdings in the future,” according to Musk, who added that the business has not sold any of its Dogecoin (DOGE) holdings. Musk clarified this week that the sale wasn’t a judgment on bitcoin.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
