Elon Musk did not rule out investing in cryptocurrencies again. AP photo
the signature Teslaowned by billionaire Elon Musk, announced the selling 75% of their holdings in bitcoin (BTC) during the second quarter of 2022. Right at the beginning of the bearish trend that pushed the price of the cryptocurrency to the lows not seen for more than a year.
It is no coincidence that the sale took place after the cryptocurrency lost more than 50% of its value compared to its all-time high. Tesla acknowledged that he got rid of 75% of his he Bitcoin, which was worth about $ 2 billion by the end of 2021.
According to estimates, Tesla would have sold approx 32,000 bitcoins. According to Bitcoin Treasuries, he had accumulated around 43,200 bitcoins and was waiting for the moment to put them away. Therefore, the company would now have little more than 10 thousand bitcoins in their coffers.
Musk’s explanation was very simple: the uncertainty caused by the post-pandemic, as well as Chinese bansforced him to sell with the intent of “maximizing cash positions”.
Elon Musk spoke to his investors.
Tesla announced the sale of its cryptocurrencies as part of its usual quarterly update. The value of bitcoin was one of the factors that penalized its performance over the past three months.
“At the end of the second quarter, we converted about 75% of our Bitcoin purchases into fiat currency,” Tesla said in a letter to shareholders, as part of the earnings report. “Conversions in the second quarter added u$ 936 million in cash on our balance sheet“.
How many bitcoins does Tesla have?
Bitcoin has risen again and the market is on hold. Photo REUTERS
In February 2021, the company announced a $ 1.5 billion investment in bitcoin. In April, it sold 10% of its stake.
For those months of uncertainty, Tesla announced that its digital assets have been reduced to 218 million dollars and that a deterioration in Bitcoin hurt second-quarter performance.
Furthermore, since the end of 2021, Tesla has stopped accepting bitcoin as a currency. payment for their cars and expressed concern about the climate impact of energy-intensive cryptocurrency mining.
In turn, it announced that it had bought traditional currencies with the $ 936 million obtained from the sale of bitcoin.
And while Elon Musk has always been among the most high-profile advocates of cryptocurrency and his statements on social media have often sparked a hectic business activity.
However, Tesla’s CEO hasn’t ruled out that his company will accumulate bitcoin again in the short term. As he said during the call in which he presented the report: “we are open to expanding our bitcoin holdings in the future”.
BTC arrives in the middle of the week with one of the highest increases of the last months in percentage terms and a price above $ 23,000.
While the rest of the cryptocurrencies still have mixed returns ranging from 8% up to 2% down in the past 24 hours.
The rise leads many to wonder if this is the beginning of a bull market (market that does not stop growing) or a bullish trap that will eventually hit small investors.
SL
Source: Clarin
