Science

Tesla sold 75% of its bitcoins: abandoning cryptocurrency?

Elon Musk, the head of Tesla, justified this massive bitcoin sale with the need to raise money.

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Between Elon Musk and bitcoinis an action-packed adventure. Tesla, a symbol of tech start-up influence, was among the first to invest in cryptocurrencies especially bitcoin. In February 2021, an American company held $1.5 billion investment in the first cryptocurrency, bitcoin. At the time, Tesla touted the “long-term potential” of these new digital currencies and acted as catalyst market ready to peak. A year and a few months later, the electric car maker sold 75% of its treasure for $936 million. The company’s current reserves are about US$218 million. bitcoin.

Will Tesla become more careful in the face ofwinter crypto”? Elon Musk gave several answers after the publication of the results. “The reason we sold most of our bitcoin holdings is because we didn’t know when the lockdown would ease in China, so it was important for us to maximize our cash position,” the Tesla chief said. Indeed, even if China banned cryptocurrencies, the Chinese market is extremely important for the electricity producer. Tesla has built a giant factory there, and China is the second largest market after the US by sales.

This is not a “judgment” against bitcoin, says Elon Musk.

However, the boss Mr. Are you here and does not bury the flagship cryptocurrency. “This should not be seen as a verdict on bitcoin,” he added, noting that Tesla is open to increasing its holdings in crypto going forward. His influence on the crypto market remains especially important, and each of his tweets about these new currencies moves the sector like no other. His simple trust in Dogecoin, which can be used to make purchases for certain Tesla products, allows this niche cryptocurrency to survive.

The sale of his assets probably took place sometime in June. Thus, at the moment the market is not experiencing a serious negative reaction. However, the next few days may tell us more about the market’s ability to withstand this bad news. speed the industry forces us to retreat from today’s realities, and as this story shows, a lot can change quickly.

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