TESLA Unloads BTC, Maintain Hold of DOGE

by Crypto Drive

On June 26, 2021 Bitcoin.com news reported “Tesla Reveals Bitcoin Holdings Worth $1.3 Billion in Q2.” The company’s second quarter of that year unaudited balance sheet shows a net digital asset value of $1.311 billion as of June 30.

It can be remembered that Tesla started accepting Bitcoin (BTC) for payments in March of 2021, but two months later stopped doing it in May.

Then this year, after denial tweets, Elon Musk disclosed to have disposed large sum of Tesla BTC holdings.  Musk says Tesla sold a big portion of its Bitcoin to raise cash amid uncertainty in one of its major markets and manufacturing hub.

“It should be mentioned that the reason we sold a bunch of our Bitcoin holdings was that we were uncertain as to when the Covid-19 lockdowns in China would alleviate. So it was important for us to maximize our cash position, given the uncertainty of the Covid-19 lockdowns in China.”

“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet.”

As of June 30, 2022 Tesla has the remaining Bitcoin amounting $218 million.

Despite the disposal of a sizeable amount of its BTC, Musk still reaffirms its trust on the two major cryptocurrency they are holding saying  “We are certainly open to increasing our Bitcoin holdings in the 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-19 shutdowns in China. And we have not sold any of our Dogecoin.” 

Musk explained that cryptocurrency talks is just a sideshow of its major business interest saying. “Tesla’s goal is to accelerate the advent of sustainable energy. Cryptocurrency is a sideshow to the sideshow. Cryptocurrency is not something we think about a lot.” 

Leave a Comment