Tesla sells 75% of its bitcoin holdings

Tesla, Inc. said it has sold up to 75% of its bitcoin holdings. This represents a sales value of $936 million.

Tesla is selling its Bitcoins after the price fell more than 50% this year.

“At the end of the second quarter of this year, Tesla has sold about 75% of our bitcoin holdings. This has increased our balance sheet with $936 million in cash.”

Tesla said in its 2Q earnings call Wednesday (July 20),

Tesla said in the statement that Bitcoin was one of the factors that affected the company’s profitability in the second quarter of this year.

In the past, Tesla CEO Elon Musk was one of the most prominent figures supporting cryptocurrencies. He often posts messages on Twitter that have led to sharp price jumps in cryptocurrencies, including Bitcoin and Dogecoin.

Tesla announced in February 2021 that it was investing up to $1.5 billion in bitcoin. The news led investors to flock to buy bitcoin. It also supported bitcoin’s price, which nearly reached $70,000 in November 2021 before the price later plummeted. The bitcoin price is currently hovering below $25,000.

In 2021, Tesla announced that it would no longer accept Bitcoins for car purchases due to concerns about the environmental impact. The reason is that Bitcoin mining is said to require a lot of electricity.

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