Elon Musk sold most of Tesla’s Bitcoin after assuring that he would not

Beyond his fortune and his incendiary verbiage, Elon Musk is known for being one of the businessmen who has evangelized the most in the last year about the use of Bitcoin. That led him to Teslathe electric car company he runs, also opted to invest in the most popular of the cryptocurrencies. However, the crisis in which virtual currencies live has led the tycoon to swerve and the automaker has shed up to 75% of its crypto investment.

By the end of June, Tesla had converted roughly three-quarters of the Bitcoin it held into dollars, the value of which has plunged 47% so far this year. This maneuver has allowed the company to add 936 million cash to its balance sheet, thus curbing the losses it was suffering because of the devaluation of the cryptocurrency they had bet on. This is detailed in the letter they have sent to Tesla shareholders about the earnings of the second quarter.

For months, Musk has publicly harangued his followers about the potential of cryptocurrencies. “I might mine, but I don’t dump,” he said a year ago at a Bitcoin conference. ‘hold‘ or not to withdraw the money invested in an asset when it is falling is a repeated mantra by the crypto community. However, those words have been carried away by the wind. Tesla started selling Bitcoin when its value was still high, but accelerated the sale when it fell in April. Musk did not say anything about it and it has now become known because, by participating in the stock market, Tesla has the obligation to publish his accounts and inform his shareholders.

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Still, the tycoon denies that this divestment means his loss of confidence in Bitcoin. “This should not be taken as a verdict on Bitcoin,” he has excused himself. “It’s just that we were concerned about the overall liquidity of the company given the (auto plant) closures in China because of the covid”. Musk has also invested part of his fortune in cryptocurrencies Etherthe second most popular, and Dogecoin, considered as a joke. In recent weeks, the businessman has hinted that the rocket manufacturer SpaceXwhich it also leads, could join Tesla and accept the purchase of its products with Dogecoin.

It was in February 2021, when Bitcoin was experiencing its first major revaluation peak, that Tesla announced that it had invested $1.5 billion in this cryptocurrency, a decision that also contributed to that peak. Two months later he announced that 10% of that stake had been sold. With today’s decision, the electric car manufacturer in the hands of Musk has reduced its digital assets to about 218 million dollars.

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Elon Musk sold most of Tesla’s Bitcoin after assuring that he would not