Tesla splurged on a major Bitcoin investment last year, and with it, company chief Elon Musk has once again clearly demonstrated that he is a big supporter of cryptocurrency. However, it was revealed that the electric vehicle manufacturer had already sold a large part of its Bitcoin holdings.
According to BBC News, Tesla offloaded 75% of its Bitcoin asset, which was valued at around $2 billion or £1.7 billion in the last quarter of 2021. The company is now backtracking as the value of Bitcoin and other cryptocurrencies fell. more than 50% this year.
Tesla revealed that it bought traditional currency using the $936 million or £782 million funds it raised from the sale of its Bitcoins. It has been noted that Elon Musk was one of the prominent figures who strongly supported cryptocurrency and consistently expressed his approval through social media. In fact, his online posts often incite powerful commercial activity.
Based on the report, the Austin, TX-based automotive company invested $1.5 billion in Bitcoin, and this was disclosed in February 2021, and this move subsequently caused a surge in demand for currency. The value of the cryptocurrency rose to nearly $70,000 in November last year before crashing unexpectedly.
Tesla also stopped Bitcoin transactions as payment for its electric vehicles, explaining that it was due to concerns about the negative effects of Bitcoin mining on the environment. Musk also said at that time that Tesla would not sell any Bitcoin. But a year after saying that, the company has sold off a large chunk of its Bitcoin, with only 25% remaining in its possession.
Fortune reported that Tesla sold 75% of its Bitcoin holdings in the second quarter of this year, and this information was made public via a shareholder filing released for its earnings call last week. On its current balance sheet, Tesla has just $218 million worth of Bitcoin remaining, and its crypto sale was the largest this year.
It was noted that during the earnings call, there was no mention of anything promoting Bitcoin, just like in the past. While Musk previously mentioned that SpaceX and Tesla bought Bitcoin, he pointed out that it was only a “small percentage of our total cash and cash assets.” Meanwhile, news of Tesla’s crypto selloff caused Bitcoin prices to plummet by around 2%.