Elon Musk drops a large chunk of Tesla's bitcoin during the bearish market. Tesla is no longer attempting to hold onto bitcoin as it dumps a large portion of the coin during this crypto winter. electric car company said during the company's Q2 earnings report that it had sold 75% of its Bitcoin holdings during this period. In selling its Bitcoin holdings, the company has accumulated a staggering sum of $963 million.
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After the sale of a large sum of its Bitcoin holdings, Teslam claims to have a total sum of $218 million in digital assets left up in its sleeve. In February 2021, to be exact, the company announced that it had purchased $1.5 billion in cryptocurrency, implying that the company is on the verge of accepting Bitcoin as payment for its products. Let's take off.
Going by the company's stunning revelation, the crypto market went into a bizarre state as cryptocurrency prices skyrocketed while solidifying Elon Musk as an actual anchor and leader of the market trajectory. In later days, much of the kindness enjoyed in the market has taken a U-turn as Elon Musk abruptly announced that his company would be jettisoning its plans to legitimize crypto payments. Tesla's decision to get rid of their cryptocurrency happens in a period where the cryptocurrency market suffers from a bearish pull and a ridiculous drop in value across the board.
Interestingly, this includes Dogecoin and Bitcoin, which enjoyed a major pull in value as Elon promoted them on his social media accounts in his position as the Chief Executive Owner of Tesla. The company's officials revealed that the cause of the sell off is an intention and drive to utilize cash positions amidst the unpredictability of China's COVID lockdowns.
We are certainly open to increasing bitcoin holdings in future. So this should not be taken as some verdict on Bitcoin. It’s just that we were concerned about overall liquidity for the company given COVID shutdowns in China, Tesla CFO Zachary Kirkhorn said.
At the time of writing in after-hours trading, the company's Q2 results report, which exceeded estimates with $2.26 billion in profit, had little impact on the stock price. Do you think that Tesla might have a rethink in the coming years and legitimize crypto payment? Let's know what you think in the comment section.
