Tesla has sold about 75% of its bitcoin holdings, converting it into fiat currency.
According to the electric car company, the sale pushed its digital assets holdings to $218 million.
Tesla’s CEO, Elon Musk confirmed the development in a statement.
According to him, the company is however open to increasing its bitcoin holdings in the future.
“We are certainly open to increasing our bitcoin holdings in the future. ”
He however clarified that Tesla has not sold any of its Dogecoin holdings.
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We have not sold any of our dogecoin.”
Tesla released its Q2 earnings report on Wednesday wherein it wrote as follows:
“As of the end of Q2, we have converted approximately 75% of our bitcoin purchases into fiat currency.
“Conversions in Q2 added $936M of cash to our balance sheet.”
Tesla’s Q2 balance sheet shows net digital assets of $218 million, down from $1.26 billion in the previous quarter.
“The company also said its Q2 year-on-year operating income was impacted by bitcoin impairment.
The electric car company’s statement of cash flows shows proceeds from digital asset sales of $936 million.
The only other time Tesla’s cash flow statement showed sales of digital assets was in Q1 2021. The sales proceeds amounted to $272 million at the time.
Tesla’s Bitcoin in 2021:
Elon Musk’s electric car company bought $1.5 billion worth of bitcoin in early 2021.
Ever since, the company did not make any other bitcoin purchase.
The electric car company never disclosed the number of BTC it owns.
However, Musk hinted in July last year that Tesla owned about 42K bitcoins.
The company also briefly accepted BTC for payments but suspended it in May last year, citing environmental concerns.
Last October, Tesla told the SEC that it may restart accepting cryptocurrencies.
Musk subsequently said Tesla will resume accepting bitcoin when there is “confirmation of reasonable (about 50%) clean energy usage by miners with positive future trend.”
However, at the time of writing, Tesla has not resumed accepting BTC.
We have not sold any dogecoin – Elon Musk
Meanwhile, Elon Musk has said that Tesla has not sold any of its Dogecoin holdings despite selling bitcoin.
Elon Musk said Tesla is ‘Certainly Open to Increasing Our Bitcoin Holdings in Future.’
Why Tesla sold its bitcoin holdings:
Although critics speculate that the electric car company sold its bitcoin holdings because of the current bearish crypto market.
However, Musk clarified that Tesla only sold its bitcoin holdings because of the Covid-19 lockdowns in China.
Elon Musk explained as follows:
“It should be mentioned that the reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate.
“So, it was important for us to maximize our cash position, given the uncertainty of the Covid lockdowns in China.”
He further explained thus:
“We are certainly open to increasing our bitcoin holdings in future, so this should not be taken as some verdict on bitcoin.
“It’s just that we were concerned about overall liquidity for the company, given Covid shutdowns in China. And we have not sold any of our dogecoin.”
Recall also that Tesla had, in a February filing with the U.S. Securities and Exchange Commission (SEC) said thus Tesla said:
“We may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions … We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.”
Elon Musk is currently in a legal battle with Twitter Inc over a $44 billion deal to buy the tech company.
Why Musk wants to opt out of the deal, Twitter insists that the deal must go on.
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