The Tesla company sold 75% of its bitcoin (BTC) in Q2 2022, worth around $936 million. To justify this operation, Elon Musk explained to the shareholders that the company had to strengthen its holdings in fiduciary currency.
Thunderbolt at Tesla
The car manufacturer Tesla sold 936 million bitcoins (BTC) in the second quarter of 2022, bringing its current cryptocurrency reserves to $218 million.
During a conference call organized following the publication of Tesla’s quarterly results, Elon MuskCEO of the company, explained the reason why it sold 75% of its BTC :
“The reason we sold some of our bitcoin holdings was because we didn’t know when the Covid lockdowns in China were going to ease. It was therefore important for us to maximize our cash position, given the uncertainty of the Covid-related restrictions in China”.
Even though this massive sale of bitcoins took place, Elon Musk indicated that Tesla was willing to bolster its BTC holdings in the future :
“This should not be seen as any verdict on Bitcoin […] And we haven’t sold any of our Dogecoin.”
Although Tesla has never purchased DOGE, the company began accepting Dogecoin payments for some of its merchandise in January 2022.
The billionaire then indicated that he viewed Dogecoin as an asset suitable for paymentswhile bitcoin was more appropriate as a store of value.
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A strained relationship from the start
It is in February 2021 that Tesla achieves the unthinkable, a $1.5 billion investment in Bitcoin. An operation made possible following the modification of its investment policy in January of the same year, which has since authorized it to hold cryptocurrencies in its treasury. This substantial and unexpected investment had moreover helped propel Bitcoin to new heights.
Shortly after, in March 2021, it was even possible tobuy a Tesla vehicle by paying with Bitcoin. Unfortunately, this payment option was suspended as of MayElon Musk announcing on Twitter that Tesla was “concerned about the rapid increase in the use of fossil fuels for Bitcoin mining and transactions”.
At the same time, Elon Musk said that “Tesla will no longer sell any bitcoin”, while according to the company’s first quarter 2021 results, published on April 26, 2021, the community learned that the company had parted with 10% of its BTCto “prove the liquidity” of the cryptocurrency.
However, the story between Tesla and Bitcoin is not over yet. Elon Musk made it clear when publishing quarterly results, and the company could well turn around when it realizes that the majority of the energy used for Bitcoin mining comes from renewable resources…
👉 To go further — How does Bitcoin (BTC) help develop renewable energy?
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