Tesla: Elon Musk’s company announces that it has sold almost all of its bitcoins

Equipment news Tesla: Elon Musk’s company announces that it has sold almost all of its bitcoins

Published on 21.07.2022 at 10:50

The news fell yesterday Tesla would have parted ways with 75% of its bitcoin holdings for almost 1 billion euros. A few hours later, Elon Musk returned to the reasons that led him to this massive sale.

Tesla: 75% of bitcoins sold for nearly $1 billion

On the evening of July 20, the cryptosphere was surprised to learn that Tesla had parted with most of its bitcoin holdings. An encouraging announcement for investors as the car manufacturer was one of the companies holding the most bitcoin capital.

This news comes after the publication of Tesla’s Q2 2022 financials. In its filings, the company says it recently got rid of 75% of its bitcoin holdings. Specifically, Tesla converted them into dollars in the amount of 936 million dollars, or approximately 918 million euros.

“At the end of the quarter, cash equivalents and short-term marketable securities increased sequentially by $902 million… At the end of the second quarter, we converted approximately 75% of our bitcoin purchases into fiat currency. Q2 conversions added $936 million to our balance sheet,” Tesla said in a report.

Given the impressive volume, it is possible that the sell-off triggered a decline in early June, pushing the price of bitcoin from €30,000 to €20,000.

Elon Musk’s explanation of the Bitcoin mass sale

The Tesla boss explained the circumstances of this exceptional cryptocurrency sale during a conference call following the release of the quarterly report.

While the company is having a tough time with its stock market plunging, oddly enough, it was the situation in China that led to the decision:

“It should be mentioned that the reason we sold some of our bitcoin holdings was because we didn’t know when the quarantine measures in China would ease. Therefore, it was important for us to maximize our cash position given the uncertainty of COVID restrictions in China. explains Elon Musk, CEO of Tesla, during a conference call.

The CEO’s surprising verdict, given his passionate tweets about cryptocurrencies a few months ago…

Elon Musk and Bitcoin, the end of the romance?

The American billionaire, who is considered the spokesman or even the guru of the crypto ecosystem, has largely contributed to the speculative bubble around cryptocurrencies in recent years. Some of these announcements made on Twitter catalyzed the mainstream adoption of crypto, systematically causing prices to rise with each of his tweets.

One was a particularly turning point… In February 2021, Tesla revealed that it had bought $1.5 billion worth of bitcoin. Elon Musk also allowed bitcoin payments on Tesla electric vehicle purchases, but the company dropped the feature shortly after for environmental reasons.

Despite the disturbing nature of the news, Elon Musk explains that he remains optimistic about bitcoin: “We are certainly open to increasing our holdings in bitcoin going forward,” “so this should not be taken as a judgment on bitcoin. We were just concerned about the overall liquidity of the business, given the shutdown due to COVID in China. »

After a major liquidation, Tesla is still holding 10,000 BTC worth $230 million at current prices. Moreover, Elon Musk’s favorite cryptocurrency seems to be spared. DOGE, the Sheba cryptocurrency, will still be in Tesla’s treasury and the brand has big plans for it, having recently been allowed as a means of payment in the Tesla store.

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