In a recent earnings statement, Tesla revealed that they sold 75% of their Bitcoin holdings.
Bitcoin has plunged by more than 50% in value since 2021 when Tesla famously invested $1.5 billion into the crypto currency because of the currency’s “long-term” prospects. Lots of consumers followed the lead of the electric car manufacturer and Bitcoin experienced a large demand surge in which Bitcoin was trading at about $70,000.
Today, however, Bitcoin is trading below $25,000 which explains Tesla’s sell-off. According to CNBC, Musk said, while explaining the sale, that “[t]he reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position.” He added that “[t]his should be not taken as some verdict on bitcoin.”
Some are skeptical of Musk’s cover-up but then again, nobody likes to be proven wrong, least of all Elon Musk.
The following sources were used:
- Tesla has dumped 75% of its bitcoin holdings a year after touting ‘long-term potential’, CNBC
- Elon Musk’s Tesla sells most of its Bitcoin holdings, BBC News