Cryptocurrency: Here’s Why Elon Musk Isn’t Buying Bitcoin Anymore

Equipment news Cryptocurrency: Here’s Why Elon Musk Isn’t Buying Bitcoin Anymore

Published on 21.10.2022 at 16:10

Accustomed to Twitter buzz after his exploits in cryptocurrencies like Bitcoin, Dogecoin or even Ethereum, the SpaceX CEO remains cautious on the matter these days. Today, Bitcoin is worth 19,000 euros, but Elon Musk does not seem to use this opportunity, and here’s why.

Elon Musk’s Bitcoin assets in Tesla

If Elon Musk certainly has personal funds in bitcoins, then it is through his companies that the American billionaire secures his crypto purchases.

Through several purchases over the past few years, in February 2021, his company Tesla became one of the largest bitcoin holders in the world, with $1.5 billion in bitcoin and other cryptocurrencies.

However, Elon Musk hasn’t “HODLed” for so long…

Last July, Tesla announced that it had disposed of 75% of its bitcoin holdings on its balance sheet for the second quarter of 2022. At a $1 billion valuation of this sale, the company did not incur any losses, on the contrary, it recorded a profit of $64 million – while the value of bitcoin was falling. This indicator suggests that Elon Musk started buying long before BTC reached 60,000 euros.

The case provided Tesla with liquidity at a critical juncture following a lockdown in China’s supply chains due to the health crisis. It is important to remember that the company was not the only one affected, given the share prices of the largest companies in various sectors. Thus, Bitcoin became a real impetus for Elon Musk.

Elon Musk is not changing his Bitcoin investment strategy

Despite this impressive sale, Tesla kept the remainder of its bitcoins. In a recent third quarter activity report, we learn that Elon Musk’s company still has $218 million in BTC.

Thus, with Tesla, Elon Musk is the owner of approximately 9,720 bitcoins – an element that testifies to the conviction of the American billionaire regarding virtual currency and blockchain technologies.

With so much bitcoin, the CEO still depends heavily on the whales of the ecosystem, so a return to shopping doesn’t necessarily seem necessary.

In addition, despite the fall in the prices of cryptocurrencies, Elon Musk is more focused on the integration of these cryptocurrencies within these companies. In March 2021, Tesla accepted payment for its cars in bitcoin and backed out very quickly for environmental reasons.

However, after a while, Elon Musk repeated in a more cautious form. Since January 2022, Tesla stores have been accepting payments in DOGE, Elon’s favorite cryptocurrency. Last May, his company SpaceX also took the plunge by offering the same kind of service.

In this sense, Elon Musk seems to be more focused on using bitcoin and other cryptocurrencies rather than investing. However, if the billionaire does buy back bitcoin and publicly announces it, it is very likely that the cryptocurrency will start bullish growth – as it did earlier after Elon Musk’s enthusiastic interactions on Twitter.

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