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Tesla, which a little more than a year ago shook the financial world by making a major investment in Bitcoin (BTC), backed off and sold 75% of its stake.
Elon Musk-led company invested $1.5 billion in BTC in Feb 2021, but ended up liquidating three-quarters of the purchases for $936 million in the second quarter of this year.
Sell three-quarters of purchases for $936 million in the second quarter of this year.
The news also weakened bitcoin’s recovery, sliding under the $23,000 mark, according to CoinGecko. Source: BTC treasuriessla dumping BTC weakened recovered The news also weakened the recovery of Bitcoin, slipping under the $23,000 brand, according to coingecko.
However, shortly thereafter, it started to regain strength and is negotiating near the crucial level at the time of the press. Musk was quoted by Reuters as saying: Musk has stated that he is not opposed to reaccumulating BTC. The Reuters quoted Musk as saying: 'Maximising our liquidity position was important for us...
We are certainly open to expanding our holdings in Bitcoin in the future, so this should not be taken as a verdict on Bitcoin.
It's just that we were preoccupied with the overall liquidity of the corporation."
I got a call from Tesla, the company allegedly pointed out that the sale of the BTC in exchange for a fiduciary currency was related to COVID-19 lockdown measures in China, This created uncertainty for the producer of the railcars.
"It's just that we were concerned about the company's overall liquidity given the COVID-19 closures in China," said Zachary Kirkhorn, Chief Financial Officer of Tesla. "Cryptoreported earlier this month that Tesla’s investment in bitcoin faced a decline of $440 million as the market began to slide earlier this year.
“it’s just that we were concerned about overall liquidity for the company given covid shutdowns in china,” tesla cfo zachary kirkhorn said.has tesla’s crypto bet failed?be[in]cryptoreported earlier this month that tesla’s investment in bitcoin faced a decline of $440 million as the market has started declining earlier this year. While Bitcoin began trading around $45,000 in April, it spiraled downward to $20,000 in late June.
Reports suggest that Tesla seems to have lost around $150 million on its crypto bet, with the company noting that the value of its remaining “digital assets” is $218 million.
Reports suggest that tesla appears to have lost about $150 million on its crypto bet, with the company noting that its remaining "digital assets" are worth $218 million.
Meanwhile, Musk has on several occasions that he intends to continue supporting Dogecoin
