Tech
Elon Musk Makes A Significant Investment In Bitcoin
(CTN News) – Elon Musk’s Tesla, which made headlines last year when it revealed a big Bitcoin investment, has now sold off most of its holdings.
Tesla’s full Q2 2022 financial report shows that 75% of its Bitcoin was sold, which was valued at $2 billion (£1.7 billion) at the end of 2021.
As Bitcoin’s value plunged by over 50% this year, Musk’s company backed away.
In its report, the company also revealed that it bought traditional currency with $936 million in sales from Bitcoin.
Tesla’s massive move came as Elon Musk has been among the most prominent promoters of cryptocurrency, and his cryptic tweets have often sparked significant trading activity across the globe.
In February 2021, Tesla announced that it had invested $1.5 billion in Bitcoin and would accept it for payment.
Electric car maker company started accepting Bitcoin payments last March. Tesla reversed the move within 49 days in May 2021.
Elon Musk on Tesla selling Bitcoin
The billionaire also said during an investor call that the crypto selloff “shouldn’t be taken as a verdict on Bitcoin”.
As a result of COVID’s shutdowns in China, he stated the company was concerned about overall liquidity.
Earlier Tesla CEO said, “We haven’t sold any of our Dogecoin” and referred to cryptocurrency as “a sideshow to the sideshow”.
Apparently, Tesla’s move reflects the company’s dire need for cash.
According to Elon Musk, the company is “overwhelmingly” concerned about not going bankrupt.
In an interview with the Tesla owners group, the billionaire revealed the company is losing billions of dollars on its new plants, supply chain problems, and COVID-19 lockdowns.
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