HomeCURRENT AFFAIRSBUSINESSTesla Sells 75% of Bitcoin Holdings, but No Dogecoin Sold

Tesla Sells 75% of Bitcoin Holdings, but No Dogecoin Sold

Tesla has sold a significant amount of its Bitcoin holdings, said the Elon Musk-owned electric vehicle-making company in a statement.

The company said in its reports of earnings for Q2 that it had sold 75 percent of its Bitcoin holdings, an investment that helped the world’s now-largest cryptocurrency by market cap, to achieve that position and surge rapidly in terms of value. 

Tesla in its balance sheet has reported that it owns net digital assets worth $218 million, which has fallen significantly from the $1.26 billion in the previous quarter. 

The company further added that its Q2 year-on-year operating income and profitability were impacted by the impairment of Bitcoin. Tesla also said that it had added $936 million to its traditional cash flow from the sale of Bitcoin. 

Tesla’s sale of Bitcoin comes at a time when the cryptocurrency has plunged to its months-low, going down by over 50 per cent since October last year. 

Tesla in February 2021 disclosed that it had bought $1.5 billion worth of Bitcoin, and thereafter sold 10 percent of its stake that April. However, after February, Tesla has not made any more investments in Bitcoin. 

Elon Musk’s championing investment in Bitcoin had a significant role in the crypto coin’s price soaring to an all-time high of $69,00 in November 2021.

One Bitcoin has been hovering around $17,000 to $22,000 for the past few months. Tesla did not specify how many Bitcoins it had initially bought or how many has it sold now, but Elon Musk had hinted last year that the company may have invested in 42,000 Bitcoins. 

The company even started accepting payments in Bitcoin for a brief period, before discontinuing it, citing environmental concerns. 

“We have not sold any of our Dogecoin,” Musk said in the earnings conference call while explaining why he sold his Bitcoin holdings. While Tesla has not mentioned anything about its Dogecoin holdings, the company began accepting DOGE payments for some merchandise in January.

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