Science

Tesla, Elon Musk and Bitcoin, is it over?

In its results report, Elon Musk’s Tesla announced that it sold $936 million worth of bitcoin (BTC) in the second quarter of 2022. The sale reduced the company’s bitcoin holdings by 75%.

Tesla moves to $218 million worth of BTC

After a $936 million bitcoin sale in the second quarter of this year, Tesla, whose CEO is Elon Musk, has reduced its bitcoin holdings to $218 million. On Wednesday, Elon Musk explained that he may increase the company’s bitcoin holdings in the future. He said that 75% of BTC assets were sold by the company because it was worried about liquidity due to Covid-related restrictions in China. Elon Musk emphasized that the decision to sell Tesla’s bitcoin (BTC) assets is not a “Bitcoin verdict.”

You should know that after Tesla’s announcement, the price of Bitcoin (BTC) dropped from $23,700 to around $23,000. It then reached $23,400. Currently, that price is hovering around $22,800. However, it managed to break the $24,000 mark on Wednesday, albeit not for long.

As a reminder, the value of BTC fluctuated between approximately $23,000 and $27,000 during January 2021. Then, in November of that year, it hit an all-time high of about $69,000. Perhaps such a rally is still being prepared!

Electric vehicle manufacturer Tesla and Bitcoin (BTC)

Electric car maker Tesla purchased $1.5 billion worth of bitcoin in early 2021. In the first quarter of 2021, he sold these assets for $272 million. He then had about $1.33 billion in BTC left, according to prices at the time. However, after adding bitcoin (BTC) to its holdings, Tesla announced that it wants to allow its customers to pay for their cars in this currency “in accordance with applicable law and initially on a limited basis.”

Eventually, in March 2021, the company announced that it was accepting Bitcoin (BTC) payments. However, they were put on hold in May, with Elon Musk explaining on Twitter that the company is “concerned about the rapid growth in the use of fossil fuels for bitcoin mining and transactions.”

Musk clarified that the electric car maker will not part with any of its bitcoins. He also said Tesla could reconsider BTC as a means of payment if miners switch to more sustainable energy sources.

Electric car maker Tesla has sold 75% of its BTC holdings. Thus, his bitcoin holdings now stand at $218 million. According to Elon Musk, the sale is not a verdict on the flagship cryptocurrency. You should know that Tesla’s second-quarter revenue fell: its gross profit ($4.2 billion) was down 22.5% from the first quarter.

Source: Block

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Avatar of Luke Jose Ajinaku

Luke Jose Ajinaku

The failed cryptocurrency investment in 2017 not only did not dampen my enthusiasm, but only increased my enthusiasm. Therefore, I decided to study and understand the blockchain and its many applications, as well as pass on information regarding this ecosystem with my pen.

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