Tesla, billionaire Elon Musk’s electric car firm, sold 75% –worth about $936M– of its bitcoin holdings according to their earnings report that was released on Wednesday, July 20. Musk, one of the most sought-after crypto enthusiasts, noted that their move “should not be taken as a verdict on Bitcoin” and assured that they are still “certainly open to increasing our Bitcoin holdings in the future.”
In a conference call, Musk cited that the move was because of the liquidity concerns regarding the continued COVID-19 lockdowns in China.
Earlier, Tesla bought about $1.5 billion worth of bitcoin in 2021. However, the Tesla CEO stated that the cryptocurrency is not regarded as a long-term asset and was a “sideshow to the sideshow” of the firm’s main goal.
“Cryptocurrency is not something we think about a lot… The fundamental goal of Tesla and the reason we’re doing this, which is my primary motivation here, is to have the day of sustainable energy come sooner. That’s our goal. We’re neither here nor there on cryptocurrency,” he explained.
While the company sold its Bitcoin, Musk assured they did not sell any of their Dogecoin holdings.
Recently, he expressed that he will keep on buying the meme cryptocurrency Dogecoin despite facing a $258 billion lawsuit alleging him for running a “Dogecoin pyramid scheme”. (Read more: Elon Musk Says He’ll Keep On Buying Dogecoin Despite Lawsuit)
On the other hand, cryptocurrency experts do not seem to be surprised with Tesla’s decision to sell its Bitcoin, noting that it is a fairly typical strategy for companies to improve cash flow during economic slowdowns.
Purcell explained that Tesla has not been alone in its decision to “shore up capital in cash currencies” and added that while the price of Bitcoin dipped following the announcement, there are already signs of recovery.
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