No Dogecoin sold, says CEO Elon Musk after Tesla sells 75% of its Bitcoin holdings
This might be a significant blow to the crypto industry, which is currently experiencing volatile times, with the second quarter of 2022 being one of the worst. Bitcoin's price has fallen from over $46,000 at the start of the quarter to under $19,000 throughout that time.
Tesla, the electric car manufacturing firm headed by billionaire and world's richest man Elon Musk, has sold a significant portion of its holdings in cryptocurrency Bitcoin. This comes a year after the EV manufacturer invested $1.5 billion in Bitcoin early last year. However, in April 2021, it sold a 10% share in the company.
In its Q2 financial report, Tesla stated that it has liquidated 75% of its Bitcoin holdings. "As of the end of the second quarter, we have converted about 75% of our Bitcoin acquisitions into fiat cash," the business said in a shareholder letter on Wednesday. "Conversions brought $936 million of cash to our balance sheet in Q2," the company said.
This might be a significant blow to the crypto industry, which is currently experiencing volatile times, with the second quarter of 2022 being one of the worst. Bitcoin's price has fallen from over $46,000 at the start of the quarter to under $19,000 throughout that time. Musk's firm also revealed that its digital assets fell to $218 million in the second quarter, down from $1.26 billion in the previous quarter, and that a Bitcoin impairment affected second-quarter profits.
Musk highlighted worries over his company's "total liquidity" as the cause. Clarifying that the transaction should not be interpreted as "some judgement on Bitcoin," he stated that the business sold the currency to maximise its cash position because to the uncertainty surrounding the Covid shutdowns. He also stated that they had not sold any Dogecoin. While Tesla has not been forthcoming about its Dogecoin holdings, the electric vehicle manufacturer began taking DOGE payments for select products in January.
Meanwhile, Bitcoin has fallen to a months-low, having fallen by more than 50% since October of last year. The cryptocurrency reached all-time highs in 2021, reaching almost $69,000 in November, mainly because to Musk's support for cryptocurrencies at the time.