- Tesla has sold off 75% of its bitcoin assets.
- The electric vehicle manufacturer invested $1.5 billion in bitcoin in the first quarter of 2017.
- In the last four months, the price of bitcoin has lost half of its value.
- Tesla’s sales increased its cash position by $936 million.
Early last year, Tesla invested $1.5 billion in bitcoin, betting on the digital currency’s “long-term potential,” as described by the electric vehicle manufacturer. The business has already sold off three-quarters of its assets.
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in its second-quarter earnings statement on Wednesday. The corporation reported that these sales increased its cash position by $936 million.
It’s a swift turnaround for Tesla and CEO Elon Musk, who frequently tweeted about various digital currencies during last year’s cryptocurrency boom. In the previous four months, the price of bitcoin has lost half of its value, resulting in a “crypto winter.”
The fair market value of Tesla’s bitcoin holdings hit $2.48 billion in the first quarter of 2021 and was approximately $2 billion by the end of the year. Bitcoin began the second quarter above $46,000 and ended below $19,000, but the company did not disclose the price at which it sold its holdings or the magnitude of its impairment.
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