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Elon Musk explains why Tesla sold its bitcoins – BeinCrypto

bye be[In]Yesterday, Wednesday, July 20th, Crypto announced that Tesla had sold 75% of its Bitcoin holdings. We now know more about the sale and the loss incurred by Elon Musk’s company.

Indeed, yesterday the cryptosphere was hit with the stunning news that Tesla sold most of its BTC. Now we know more about Elon Musk’s plans for the future. Along with the announcement, the price of bitcoin suddenly dropped from $24,000 to $23,000 while the asset is trading around $22,600 today, down 6% from the last 24 hours.

What motivated the sale of Tesla?

After yesterday’s shake-up, the cryptocurrency market has calmed down. Musk explained that the sale of Tesla’s digital assets was largely driven by concerns that the shutdowns in China had impacted the company’s overall finances.

“The reason we sold some of our bitcoin holdings is because the lockdown situation in China is uncertain due to Covid, so it was important for our money to maximize our FIAT currency position.”

Elon Musk, CEO of Tesla.

However, again, according to Elon Musk, this sale is in no way aimed at the bitcoin asset and cryptocurrencies in general, and Tesla is still open to expanding its involvement in bitcoin in the future. He himself would not sell his personal BTC holdings.

Economic damage to the company?

While the sale price was not exactly known yesterday, we do know more about the amount and the loss incurred by Tesla. The selling price of each BTC would be $28,888, a loss of 9% if we compare this price with the 2021 buying price: $31,620. Although it is difficult to operate in the crypto market, both in the bear market phase and during the bull market, we can observe that Tesla maintains its bitcoin holdings on every ATH. Indeed, in both April and November 2021, the company held onto its assets as prices topped $69,000 twice. And yet, while 2022 confirmed a bear market, the company sold most of its assets at a loss during that time.

Dogecoin reserves supported

Conversely, with regard to Dogecoin holdings, Tesla and Musk have chosen a completely different strategy. Indeed, Musk has been adamant on this issue, and Tesla has not liquidated its assets and does not intend to do so in the future.

“We didn’t sell our Dogecoin; we still have them.”

Elon Musk, CEO of Tesla.

This strategy is enough to solidify Elon Musk’s “father of the Great Danes” status and raise more questions about the billionaire’s close ties to the same coin. Indeed, in recent weeks, the Tesla boss has consistently tweeted about Dogecoin and sought to establish it as an alternative currency for purchases within his companies, even though Tesla made BTC purchases impossible after initially accepting it.

Denial of responsibility

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