Tesla, which is the leading electric motor company and one of the companies that had accumulated the largest amount of bitcoins, has sold 75% of its bitcoin holdings in the second quarter of 2022.
According to Tesla’s second-quarter report:
“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.”
While giving reasons as to why they sold the bitcoin holdings, Tesla said that it sold the butch of bitcoins because they “were uncertain as to when the Covid lockdowns in China would alleviate.” Tesla also went ahead to say that the move should not be taken as a form of a verdict on Bitcoin.
Tesla retains its Dogecoin holdings
After revealing the sale of 75% of its bitcoin holdings, Elon Musk went ahead to confirm that the company has however not sold any of its Dogecoin holdings.
Tesla had accumulated bitcoins worth about $1.5 billion by early last year and it even went ahead to briefly accept it for payment in the purchase of Tesla vehicles before dropping due to environmental concerns. According to the financial statement by Tesla, the company is only left with $218 million worth of digital assets including Dogecoin, which it currently accepts as payment for Tesla merchandise.
A surprise turn of events
The sale of bitcoins by Tesla took a majority of the crypto community by surprise since Musk had in May said that the company would not sell Bitcoin.
In addition, nobody expected the company to sell bitcoin after it dropped the way it has.