Tesla sold 75 percent of its bitcoin in the second quarter of this year, adding $936 million in cash to its balance sheet, as it grapples with the economic downturn amid the cryptocurrency falling like a cliff.
Last year, Tesla invested $1.5 billion in bitcoin and announced that it would accept bitcoin as a form of payment.
In a second-quarter earnings call with analysts, Tesla CEO Elon Musk said the reason the company sold a portion of its bitcoin holdings was because we were unsure when the Covid lockdown in China would ease.
Therefore, given the uncertainty of the COVID lockdown in China, it was important for us to maximize our liquidity position, he added. We will certainly increase our bitcoin holdings in the future. So it should not be taken as some judgment on bitcoin.
Musk said the company is concerned about overall liquidity for the company given the shutdown in China.
And we haven’t sold any of our Dodgecoins,” he said.
Less than two months after trading on bitcoin, Tesla has put the brakes on the popular cryptocurrency as a payment mode for buying its electric vehicles, citing environmental damage.
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