Science

Cryptocurrency collapse: Tesla resells 75% of its bitcoins, but not its dogecoins

Tesla’s bet on massive investment in bitcoin was not such a good idea. In its Q2 2022 financial report, Elon Musk’s company said it had sold three-quarters of its bitcoin holdings.

Tesla © Reuters, Dado Ruvic

As you probably already know, in February 2021, Tesla invested over $1.5 billion in BTC, or about 1.4 billion euros. A month later, the automaker announced that it was starting to accept cryptocurrency as payment for the sale of its new vehicles.

Just 49 days later, Tesla abandoned this option due to the environmental impact of the cryptocurrency. Last month, and with the Bitcoin crash, Tesla reported that it had lost nearly $600 million. He just told his investors today that he has sold three-quarters of his holdings.

Tesla sells 75% of its assets in BTC

“At the end of the second quarter, we converted roughly 75% of our bitcoin purchases into fiat currency. Q2 conversions added $936 million to our balance sheet,” Tesla said in its financial report.

Considering the initial investment, if the sale of 75% of this amount generated $936 million, that means the company has lost about $189 million (so far), which is not too bad considering the decline in the value of bitcoin that started earlier. this year.

Read: Elon Musk reveals his portfolio of cryptocurrencies and panics on the Internet

During the company’s earnings call on Wednesday, Elon Musk said that Tesla sold its bitcoin to “maximize cash” for the company, which was important to do “given the uncertainty of COVID restrictions in China.” He also said that the move should not be taken as a “judgement” to the cryptocurrency, and that Tesla is still open to buying bitcoin again in the future.

While no one knows how many Dogecoins Tesla has, the company has said it did not convert them. The company lists on its balance sheet that it still has $218 million worth of “digital assets” without specifying which ones.

Source: Tesla

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.