Tesla sells the majority of its Bitcoins, which leads to a temporary decline in digital asset's price.
Tesla, an American electrical vehicles manufacturer owned by Elon Musk, has turned 75% of its Bitcoins into fiat money.
During the overview of the second quarter, Tesla released its financial disclosure, which states that the company has received $936 million after selling its Bitcoin.
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After the news broke, the Bitcoin price dropped by 1,7%. However, it soon went back to its previous price, after Elon Musk explained, Tesla’s decision.
Musk claimed that the main reason for selling Bitcoin is uncertainty due to the lockdowns in China, where most of its manufacturing is happening. He reassured:
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.
Elon Musk has been known as an active advocate for cryptocurrency. Therefore, it was no surprise that by the end of 2021, Tesla held almost $1.26 billion in Bitcoin. At that time, the company was considering the possibility to allow buyers to pay for their products in this cryptocurrency. However, soon the idea has been thrown away due to the energy usage of this crypto.
After the recent sale, Tesla holds $218 million worth of digital assets in its wallet. Despite selling the majority of Bitcoin, Musk confirms that Tesla still holds all of its Dogecoins. Tesla's CEO doesn’t disclose how much Dogecoin the company holds.
Tesla, on their online store, allows users to pay in Dogecoins for their products.
Back in June, Elon Musk and his companies, Tesla and SpaceX, were sued for $258 billion due to allegations of manipulating Dogecoin prices.