Tesla sold 75% of its Bitcoin holdings and Crypto Market in Pressure
Electric vehicle giant Tesla has dumped most of its BTC reserves, according to its second-quarter earnings statement released on Wednesday.
Elon Musk's electric vehicle maker has sold 75% of its BTC reserves, according to its second-quarter earnings statement.
"As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency," and "Conversions in Q2 added $936M of cash to our balance sheet." Tesla said in its quarterly earnings report.
Tesla invested $1.5 billion in bitcoin early last year, banking on what the electric car maker called the digital currency’s “long-term potential.” The company has already sold three-quarters of its bitcoin holdings.
After the release of the earnings statement by Tesla, we have observed a sudden drop in the price of bitcoin below $23000 and in the crypto market. Tesla was one of the largest corporate holders of bitcoin, having bought $1.5 billion worth of BTC last year and now the news of bitcoin sold by Tesla is creating pressure in the crypto market because Elon Musk is considered to be one of the most supportive individuals in the crypto world for bitcoin and doge coin. At the time of writing bitcoin price is trading at $22830.
Last year, Tesla stopped accepting bitcoin for car purchases because of the environmental impact of mining, but he tweeted that the company “will not be selling any bitcoin.” A week later, he tweeted emojis indicating the company has “diamond hands” when it comes to bitcoin investing.
Disclaimer & Suggestion : Please always do your due diligence before investing in any cryptocurrency or project. This must not be treated as financial advice.