tesla sold bitcoin – BOL News Staging

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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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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Elon Musk: Tesla Sold Its Bitcoin Due to China’s COVID Lockdowns

Tesla Q2 2022 report, 75% of its bitcoin assets have been sold

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