International electric automobile giant Tesla Inc has sold about 75% of its Bitcoin holdings worth $936 Million. Tesla made this announcement in a shareholder letter that was part of the company’s earnings report.

This huge chunk of Bitcoin holdings that have been sold off was an investment that helped to legitimize the world’s largest cryptocurrency back when Bitcoin was struggling for liquidity. The shareholder letter revealed that the automotive company had converted 75% of the company’s Bitcoin purchases into fiat holdings and that the conversions in the Second Quarter of the year 2022 had added $963 Million to their balance sheet.

Tesla disclosed that it had invested $1.5 Billion in Bitcoin in March 2021 and had cashed in on 10% of that investment in April of the same year. They also announced that the total value of their current digital asset holdings has shrunk to $218 Million and that a Bitcoin dip reduced second-quarter profitability.

Tesla CEO Elon Musk however stated that the sale should not be seen as some verdict on Bitcoin as he cited liquidity concerns of the company as the main reason for the sale. Musk also said that Tesla did not sell any of its Dogecoin holdings (a meme-based cryptocurrency he has backed).

Elon Musk has been a strong supporter of cryptocurrency. His views on the profitability and future of cryptocurrency and his disclosure of his crypto holdings often boost the prices of cryptocurrency. Tesla had accepted Bitcoin as payment for their products for about two months before pausing temporarily in May 2021.

Musk had previously informed the public that Tesla will resume accepting Bitcoin as payment once it conducts due diligence on the amount of energy it takes to mine Bitcoin. Bitcoin briefly rebounded after the sale was announced on Wednesday.

Featured Image Source:

Leave a Reply

Your email address will not be published. Required fields are marked *

Captcha Plus loading...