Tesla Sells $936 Million Worth Of Bitcoin

Sustainable powerhouse, Tesla, recently announced that the company has sold 75% of their Bitcoin holdings.

Recently released financial disclosures confirmed that Tesla sold 75% of its Bitcoin holdings. “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in its quarterly report. According to the financial statements released by the electric car company, Bitcoin had remained stable for three consecutive quarters, leaving many questioning the establishments’ decision to exit its position. 

BREAKING: Tesla, $TSLA earning reports reveals they sold 75% of their #Bitcoin worth $936 million.

— Watcher.Guru (@WatcherGuru) July 20, 2022

By the end of March 2022, Tesla had approximately $1.261 billion worth of digital assets on its balance sheet, with the majority of the fund made up of BTC holdings. However, after the liquidation of 75% of its Bitcoin, Tesla now holds $218 million worth of the asset. This is not the first time Tesla has sold a portion of their BTC though. In March of 2021, Tesla sold 10% of the leading cryptocurrency to “prove liquidity of Bitcoin as an alternative to holding cash on its balance sheet.”

As soon as Tesla sold their BTC, the price of the coin fell by 1.7% to $23,300, showcasing the impact the sale had on the crypto market. However, as soon as the price fell, it immediately shot back up in reaction to Elon Musk’s latest statement. “Given the uncertainty of the COVID lockdowns in China,” he stated. However, Tesla is open to increasing its bitcoin exposure in the future, and “this should not be taken as some verdict on Bitcoin.” Musk also said Tesla had not sold any of its Dogecoin. For two years, the company held 42,000 BTC, and after selling 75% of its holdings for $936 million, it’s estimated that $29,000 was the average price per coin at the time of sale.

As the space continues to grow, liquidations of this size will cease to matter as there will be more belief within the crypto space. For now, it’s relatively new so liquidations should not be a cause for concern, especially when factoring in macroeconomic conditions. 

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