Not even Tesla trusts Bitcoin anymore: The company sells 75% of its cryptos to minimize losses

Not even Tesla trusts Bitcoin anymore: The company sells 75% of its cryptos to minimize losses

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early last year crypto fever has infected Tesla. The company announced a $1,500 million investment in Bitcoin. Shortly thereafter, he upped the ante and allowed his cars to be bought with this cryptocurrency.

Now the tide has turned. With the global economy struggling and cryptocurrencies losing much of what they achieved late last year, Tesla has decided to shed some ballast. You sold 75% of the bitcoins you bought and it seems that they no longer trust cryptocurrency.

A round trip investment

Elon Musk’s cryptocurrency idyll had several potholes. His influence on social networks like Twitter has resulted in his comments on that social network triggering the price of Bitcoin and Dogecoin on multiple occasions, but the cryptocurrency market has been plummeting for months.

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In one year we’ve taken bitcoin from $65,000 to about $23,000 now.

This investment in Bitcoin that Tesla made in February 2021 seemed to make sense: In twelve weeks they have made more money with it than in twelve years building a car.

Things were set to go even further with the cryptocurrency’s rise in the months that followed, but Musk, theoretically concerned about the energy consumption of bitcoin mining, announced it in May 2021 They no longer accepted car purchases with this cryptocurrency.

“This is not a judgment on Bitcoin”

The fall in value of cryptocurrencies has ultimately led to the company exiting its positions in this segment. Presenting his quarterly results, Elon Musk stated that the sale was due to not knowing “when the lockdowns due to COVID-19 will be eased in China, and it was important to us to maximize our cash position“.

Tesla’s creator added that this decision “should not be taken as a judgment on bitcoin‘, commenting that Tesla remains open to increasing its investments in cryptocurrencies in the future.

The sale of these crypto assets has allowed Tesla Get $936 million to improve your cash flow. According to those responsible, the valuation of his portfolio is now 218 million.

The impact on Bitcoin’s value was clear: the cryptocurrency had been airing slightly for the past few weeks, but this sale seems to have been one of the reasons another drop in valuealbeit less pronounced.

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