Tesla, under Elon Musk's leadership, offloads 75% of its Bitcoin investment
Tesla Sells Off Part of Its Bitcoin Holdings
In a move aimed at bolstering its cash position amid uncertainty about the alleviation of Covid lockdowns in China, Tesla, owned by Elon Musk, has sold 75% of its bitcoin holdings for $936 million.
The decision to sell a portion of its digital assets came after Tesla's income and profitability were impacted due to its bitcoin price fluctuations. The company had acquired $1.5 billion worth of bitcoin back in February 2021.
According to Musk, the sale was not a verdict on bitcoin, and Tesla remains open to increasing its crypto holdings in the future. The remaining value of Tesla's digital assets is now worth $218 million.
Tesla stopped accepting bitcoin as a mode of payment last year, but Musk had previously stated that the company would not be selling the bitcoin it owned. The current value of Tesla's remaining bitcoin holdings is not explicitly mentioned.
In the first quarter of 2021, 10% of Tesla's bitcoin acquisition was cashed out, adding $936 million to Tesla's balance sheet. The conversions have significantly improved the company's financial position, with the value of these bitcoin holdings at the end of 2021 being $2 billion.
The value of Tesla's bitcoin holdings at the end of Q1 2022 is approximately $1.26 billion, with the last known transactions occurring in early 2021. Tesla converted approximately 75% of its bitcoin purchases into fiat currency, leaving behind a substantial portion of its digital assets.
For those interested in learning more about Tesla's stance on bitcoin and its commitment to clean energy, we recommend reading "Elon Musk Says Tesla Will Resume bitcoin Transaction When Miners Use Clean Energy."
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