Elon Musk’s Tesla has sold off 75% of its bitcoin, according to the company’s latest earnings report. Tesla’s bitcoin reserves are now worth $936 million, down from a peak of $2 billion.
Elon Musk’s electric car company Tesla has sold off a huge chunk of bitcoin that it purchased for $US936 million ($A1.4 billion), it has been revealed. The sell-off took place between April and June, during a severe slump in the market for the cryptocurrency. However, Elon Musk remains a big fan of crypto, and has even accepted bitcoin as a form of payment for Tesla cars.
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” the update stated. “Conversions in Q2 added $936M of cash to our balance sheet.”
Tesla held around a total of 42,000 BTC at the start of Q2, and sold the majority of the bitcoin at an average price of ~$29,000.
On February 8, 2021 Tesla announced that it had purchased $1.5 billion in bitcoin and had begun accepting BTC as payment. Later in Q1, 2021 the company sold $272 million of its bitcoin at a profit, with Elon Musk saying the reason was to prove the asset’s liquidity and viability as an alternative to cash on its balance sheet.
Tesla later on stopped accepting bitcoin payments due to energy concerns, but Musk stated that “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
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Read the original post on Bitcoin Magazine.
