Elon Musk Still Believes in Bitcoin, Says Tesla Will “Buy Some Up in the Future”

The sale of 75% of Tesla’s Bitcoin reserves has caused consumer concern. Elon Musk reassures them, however: Tesla has no intention of getting rid of all its stock and even plans to invest more in cryptocurrencies in the future.

If many media have seen the harbingers of a market collapse, Elon Musk wants to reassure the public: the sale of 75% of Tesla’s Bitcoin reserves does not in any way represent a “value judgment”. The company and its CEO continue to firmly believe in the potential of Bitcoin. It is also “definitely open to new investments in the future”.

In the words of the CEO of Tesla, it was the economic context that prompted the company to sell 75% of its Bitcoin reserve – or $938 million that the company was able to add to its quarterly balance sheet. Elon Musk evokes sharply increasing costs and especially new lockdowns in China, which visibly heavily affect the group’s activities internationally.

The decision to sell its stock of Bitcoin at the bottom does not in itself make much sense. If Tesla had wanted to realize a capital gain, the company would have sold its stock at its peak, at the end of 2021. The company was aiming for a long-term profit, but has recently been exposed to a lack of liquidity. It therefore logically chose to get rid of the “riskiest” asset. A “logical” decision, according to specialist Kylie Purcell, who explains that “companies tend to withdraw their capital from more volatile investments to convert them into cash in the event of an economic slowdown.”

Tesla had bought the equivalent of $1.5 billion in Bitcoin in February 2021. Elon Musk’s company was the first multinational – outside of investment funds – to announce a massive investment in cryptocurrency, and also accept cryptocurrency payments from its customers for all online orders.

Follow Geeko on Facebook, Youtube and Instagram to not miss any news, tests and tips.

Leave a Comment