Elon Musk reveals why Tesla massively sold its bitcoins

Yesterday evening, the entire crypto market learned with amazement that Tesla, owned by the whimsical billionaire Elon Musk, had offloaded 75% of its bitcoin holdings at the end of June for nearly $1 billion. A few hours after this announcement, the reasons and circumstances of this massive sale are a little clearer.

Tesla and Bitcoin, electrical relations

During a conference call, following the publication of Tesla’s balance sheet for the second quarter of 2022, Elon Musk returned in more detail to the reasons which led his company to offload 75% of its bitcoins, to an estimated $936 million.

Surprisingly – or not – this is the situation…. in China which, by a formidable butterfly effect, is once again causing the crypto market to waver:

“The reason we sold a lot of our bitcoin holdings is that we weren’t sure when the COVID lockdowns in China would ease. So it was important for us to maximize our cash position, given this degree of uncertainty.”

Elon Musk

Thus is written the new chapter of a complicated relationship between the queen of cryptocurrencies and the prince of Mars.

A story whose introduction dates back to February 2021, when Tesla revealed that it had purchased $1.5 billion in bitcoins. Musk said at the time that he planned to accept the digital currency for the acquisition of Tesla vehicles. An ambition that will become reality a few months later… before a first anthology backpedaling, the big boss deciding that after reflection, for lack of being ecologically virtuous enough, Bitcoin finally no longer deserved to be offered as a means of payment by the Car manufacturer.

If it were a romantic relationship, a specialist would perhaps see in these procrastination the mark of a psyche that was disturbed to say the least and, to be honest, quite toxic. But since this is business involving one of the most powerful companies in the world, we prefer to speak of agile strategic adjustments, for lack of a better word.

>> Musk released his bitcoins: get them fast and beat the richest man in the world <<

The DOGE, spared from the purge

“This should not be seen as any verdict on bitcoin”it is with these words that Elon Musk tries to reassure a most nervous cryptomonetary ecosystem in recent months.

An ecosystem on which he knows to have a very important influence. The Space X manager explains in passing that TESLA will be ready to increase its bitcoin allocation again in the future, without providing any details on this subject. He finally points out that crypto is a secondary sub-topic in his eyes, while indicating that that ” [Tesla] was neither present nor absent from cryptocurrency”. Pure Elon Musk in the text, therefore.

Finally, that the aficionados du DOGE, darling of the billionaire, is reassured: Tesla empties its coffers of its digital gold but seems ready to keep all the small Shiba-headed coins in its glove box.

Tesla still holds approximately 10,000 BTC, or at the current price around $230 million. A quantity which remains substantial but which, in any case, takes the company out of the small club of major players and main holders of bitcoins… Good or bad news?

Because the crypto market hates nothing so much as uncertainty, it is very possible that Bitcoin will suddenly find itself on sale in the next few days… Perhaps the perfect time to go stock up on FTX, the benchmark for crypto exchanges (link affiliated)

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