- Tesla sold 75 percent of its Bitcoin holdings, valued at around $936 million.
- Company changed majority of Bitcoin to fiat currency for a realised gain, resulting in a $106 million charge.
- China’s “zero COVID policy” is being tested once more, sparking fresh economic headwinds.
Elon Musk, CEO of Tesla, detailed during today’s results call why the business sold 75 percent of its Bitcoin holdings, valued at around $936 million, as reported in its Q2 earnings report.
“The reason we sold a bunch of our Bitcoin holdings was that we were uncertain when the COVID lockdowns in China would alleviate,” Musk said on the call. Given the unpredictability of COVID lockdowns in China, it was crucial for us to optimise our cash position.
Despite the fact that China had loosened COVID restrictions in major cities at the end of May, an increase in instances in Beijing and other critical regions caused the government to reinstate restrictions a few weeks later. In Shanghai, mass testing and lockdowns were performed earlier this month.
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