Tesla discloses it had sold 75% of its Bitcoin

    25 Jul 2022

    Elon Musk’s Tesla revealed that it had sold 75% of its Bitcoin coin because it was concerned about “overall liquidity” due to COVID-19 lockdowns uncertainties in China. This February, Tesla was holding nearly $2 billion in Bitcoin.

    On June 20, The Tesla team announced this statement in the company’s second quarterly meeting. While looking more into the BTC sale news, the financial summary of Tesla’s Q2 earnings report read that the team has converted around 75% of Bitcoin purchases into fiat currency, at the end of Q2.

    This amounts to BTC worth $936 million. Moreover, the 75% coin sale leaves the current BTC holdings of the company at $218 million.

    Tesla CEO said that this BTC sell-off should not be taken as some verdict on the coin.

    “We sold a bunch of our Bitcoin as we were uncertain as to when the COVID lockdowns in China would alleviate. We are open to increasing our BTC holdings in the future. So this should not be taken as some verdict on Bitcoin and we have not sold any of our Dogecoin,” he added.

    In June 2021, Elon Musk remarked that he might pump Bitcoin, but not dump it. “I definitely do not believe in getting the price high and selling … I would like to see bitcoin succeed,” said the Tesla Chief.

    This February, Tesla told the SEC it was holding nearly $2 billion in Bitcoin at the end of last year. The company purchased a total of $1.5 Billion in Bitcoin in 2021. The cryptocurrency finished the year up nearly 60%, trading above $46,000 on December 31. It had slipped as low as $30,000 in July amid concerns over a regulatory crackdown in China, then rallied to an all-time high above $68,000 by early November.

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