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Leading EV maker Tesla said during its Wednesday earnings call that it had converted 75% of its Bitcoin assets into cash. According to its Q2 report, Tesla possessed only about $218 million in cryptocurrencies at the end of the second quarter.
TESLA INC – AS OF THE END OF Q2, WE HAVE CONVERTED APPROXIMATELY 75% OF OUR #BITCOIN PURCHASES INTO FIAT CURRENCY https://t.co/ysR2ybngzO
— Susan Li (@SusanLiTV) July 20, 2022
In February 2021, the well-known e-car manufacturer said that it had bought $1.5 billion worth of Bitcoin, driving the price of the leading cryptocurrency to all-time highs. Shortly after, it made a tiny sale to test Bitcoin’s liquidity.
The Elon Musk-run firm ceased taking Bitcoin as a form of payment in May 2021 because of environmental concerns. At the end of 2021, Tesla stated that it had approximately $1.99 billion worth of Bitcoin in its possession. Following the announcement, the largest cryptocurrency is now trading just around the $23,000 mark, down about 3%.
Musk stated that Tesla wouldn’t be “selling any Bitcoin” and would reevaluate accepting the currency as payment if miners shifted to more environmentally friendly energy sources. In actuality, the firm had not disclosed any additional digital asset sales since the first quarter of 2021.
According to CoinMarketCap, the value of Bitcoin fluctuated between $23,000 and $27,000 in January and reached an all-time high of almost $65,000 in November 2021. The coin has recently been trading in the low $20,000 range, briefly crossing $24,000 on Wednesday.
Tesla reduced its existing holdings to $218 million in the second quarter of 2022 by selling $936 million worth of Bitcoin. The amount was included in the company’s second-quarter earnings report, which was released on Wednesday, under the heading “proceeds from sales of digital assets.”
