Tesla has Sold $963 Million worth of Bitcoin
Tesla motors, biggest electric car manufacturer, has SOLD $963 Million worth of Bitcoin as revealed in their earnings report. Elon Musk said that they did so in order to maximise cash flow in the company as it was hit hard due to covid and other factors. The electric car firm has offloaded 75% of its Bitcoin, which was worth about $2bn (£1.7bn) at the end of 2021.
Interestingly Microstrategy, a business intelligence company, bought Bitcoin In Q2 As Tesla was selling, at the same time Saylor steps down from CEO position at company. During the period from May 3 to June 28, MicroStrategy bought an additional 480 bitcoins for about $10 million – an average price of $20,817 per coin.
Although Elon Musk said “This should not be taken as some verdict on Bitcoin,” Musk said. “It’s just that we were concerned about overall liquidity of the company given the Covid shutdowns in China.”
Last year, Elon posted on Twitter that Tesla has diamond hands. Meaning that it would not sell off its Bitcoin holdings no matter what! But now we are learning about their recent sell-off. And the percentage is also significant ( 75% )
Josh Olszewicz, head of research at crypto fund manager Valkyrie Investments, said rough estimates would place Tesla’s Bitcoin sales at around the $30,000 price level, with $218 million in remaining digital assets on its balance sheet. Tesla accepted bitcoin as payment for less than two months before stopping in May 2021.
Along with the US tech sector, crypto has been declining since the beginning of 2022. We recently saw many crypto exchanges filing for chapter 11 bankruptcy.
One thing to note is that Tesla has already sold their Bitcoin and we don’t know if they have plans to buy back later. Bitcoin is still holding above the critical $23127.10 as of today 4th Aug 2022.