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

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

The news fell yesterday, Tesla would have parted with 75% of its holdings in bitcoin 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 Bitcoin sold for nearly $1 billion

On the evening of July 20, the crypto sphere learned with astonishment that Tesla had parted with a major part of its Bitcoin holdings. A reassuring announcement for investors since the car manufacturer was one of the companies holding the most Bitcoin in capital.

The news came following the release of Tesla’s accounts for the second quarter of 2022. In its reports, the company says it recently offloaded 75% of its bitcoin holdings. Concretely, Tesla converted them into dollars, for a value of 936 million dollars, or approximately 918 million euros.

“At the end of the quarter, cash equivalents and short-term marketable securities increased successively 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 of cash to our balance sheet,” Tesla said in its balance sheet.

Given the impressive volume, it could be that the sell-off triggered the early-June decline pushing the price of Bitcoin from €30,000 to €20,000.

Elon Musk’s explanation of the massive sale of Bitcoins

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

Although the company faces complicated times with a fall in its value on the stock markets, surprisingly, it is the situation in China which would have led to the decision being made:

“It should be mentioned that the reason we sold some of our bitcoin holdings was that we were uncertain as to when the COVID lockdowns in China would ease. It was therefore important for us to maximize our cash position, given the uncertainty of COVID lockdowns in China. explains Elon Musk, CEO of Tesla, in a conference call.

A surprising verdict from the CEO, when we remember his passionate tweets about cryptos a few months ago…

Elon Musk and Bitcoin, the end of a romance?

Considered to be the spokesperson, or even Guru, of the crypto ecosystem, the American billionaire has largely contributed to the speculative bubble around cryptocurrencies in recent years. Several of these announcements made on Twitter have been the catalyst for a massive adoption of cryptos, systematically triggering, with each of his tweets, a price surge.

One, had particularly marked a turning point… In February 2021, Tesla revealed that it had bought Bitcoins for 1.5 billion dollars. Elon Musk had also allowed Bitcoin payments in the acquisition of Tesla electric vehicles, a feature that the company withdrew shortly after for ecological reasons.

Despite the worrying nature of the news, Elon Musk explains that he is still optimistic about Bitcoin: “We are certainly open to increasing our bitcoin holdings in the future” “so this should not be taken as a verdict on bitcoin. It’s just that we were concerned about the overall liquidity of the business, given the COVID shutdowns in China. »

After the large liquidation, Tesla still keeps 10,000 BTC, worth $230 million at current prices. Moreover, Elon Musk’s favorite cryptocurrency seems to have been spared. The DOGE, the crypto with the effigy of the Shiba would still be in Tesla’s coffers, and the brand has big plans for it, it was recently authorized as a means of payment on the Tesla store.

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