bitcoinBTC/USD
$ 21,564.78
ethereumETH/USD
$ 1,724.51
tetherUSDT/USD
$ 1.00
cardanoADA/USD
$ 0.467379
xrpXRP/USD
$ 0.340513
usd-coinUSDC/USD
$ 1.00

Tesla Sold 75% Of Its Bitcoin Holdings, Might Buy Again In The Future

Granit.M

On Wednesday, July 20, Tesla revealed its Q2 2022 results, in which the electric vehicle manufacturer discussed its Bitcoin holdings. According to data, Tesla (NASDAQ: TSLA) sold 75% of its Bitcoin (BTC) holdings to increase its cash on hand.

The company claimed that last quarter, the widespread COVID shutdown forced them to make this difficult decision. Tesla is forced to close its Shanghai production for 22 days in April, as a result.

“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the COVID lockdowns would alleviate, so it was important for us to maximize our cash position. This should not be taken as some verdict on Bitcoin. It’s just that we were concerned about overall liquidity for the company”Elon Musk, the CEO of Tesla, stated on the results call on July 20.

The company is “absolutely open to growing our Bitcoin holdings in the future,” Musk added. But he also stated that the company has not sold any of its Dogecoin (DOGE).

On July 19, Bitcoin (BTC) was gaining traction and moving in the direction of $24,000. However, the revelation that Tesla sold its Bitcoin (BTC) might have a detrimental impact on the cryptocurrency market. Bitcoin (BTC) is currently 2% down in price and not far from its 200-week moving average of $22,800.

Zach Kirkhorn, CFO of Tesla, reported that his company’s selling of Bitcoin (BTC) resulted in little profit. However, as the cryptocurrency market crashed, Tesla wiped down the value of the remaining Bitcoin (BTC) holdings, wiping out all of the earnings.

The company has an unrealized loss of $106 million as of the current Bitcoin (BTC) pricing. Tesla is now experiencing a financial shortage, so it’s unclear if the company would invest in Bitcoin (BTC) again. Additionally, this could discourage other companies from investing their excess cash in Bitcoin (BTC).

Also read:

Related News

Ethereum’s Last Test Run Before the Biggest Crypto Event is Over.

The last practice run for Ethereum’s long-awaited update, which has been touted as one of the most significant events in the history of cryptocurrencies, was just completed.  The so-called proof-of-work technique has been used for mining Ethereum since the cryptocurrency was launched about a decade ago. It needs an excessive amount of energy as well as the solving of difficult mathematical problems by an enormous number of competing machines. The

Read More »

More trouble for Coinbase as the US Supreme Court rejects its appeal

The SEC is investigating Coinbase, the largest cryptocurrency exchange in the US, for allegedly listing securities on its platform. The Supreme Court’s denial of the exchange’s plea has caused yet another major problem. According to Bloomberg, the US Supreme Court rejected Coinbase’s request to submit its user disagreement to arbitration right now. It was said that the court’s request for the justices to intervene in the case was rejected. The

Read More »

Hodlnaut Has Become the Latest Crypto Lender Platform to Block Withdrawals

The cryptocurrency lending platform Hodlnaut, which is headquartered in Singapore, has halted withdrawals, token swaps, and deposits, blaming “current market circumstances.” This makes Hodlnaut the latest in a series of cryptocurrency companies to go out of business since May. According to the notice made on Monday, the business also stated that it will revoke its registration with the Monetary Authority of Singapore (MAS) to provide digital token payment services. According

Read More »

My Coins

bitcoinBitcoin
$ 21,564.788.28%
ethereumEthereum
$ 1,724.517.02%
cardanoCardano
$ 0.46737913.82%
tetherTether
$ 1.000.1%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

[email protected]

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: [email protected]