On June 20, Elon Musk’s Tesla revealed that it had sold 75% of its Bitcoin coin because it was concerned about “overall liquidity” due to COVID-19 lockdowns uncertainties in China. The Tesla team announced this statement yesterday in the company’s second quarterly meeting.
Bitcoin price spiked to $23,879.03 last night, reportedly due to Tesla’s BTC sale announcement. However, at the moment, the price of Bitcoin declined and traded at $22,927.5, with a 3.5% dip in the past 24 hours.
While looking more into the BTC sale news, the financial summary of Tesla’s Q2 earnings report read that the team has converted around 75% of Bitcoin purchases into fiat currency at the end of Q2. This amounts to BTC worth $936 million. Moreover, the 75% coin sale leaves the current BTC holdings of the company at $218 million.
Contextually, Tesla CEO Elon Musk said that this BTC sell-off should not be taken as some verdict on the coin. Instead, he added that they sold a bunch of our Bitcoin as they were uncertain when the COVID lockdowns in China would alleviate. They are open to increasing their BTC holdings in the future. So this should not be taken as some verdict on Bitcoin, and they have not sold any of our Dogecoin.
In June 2021, Elon Musk remarked that he might pump Bitcoin but not dump it. Musk said that he does not believe in getting the price high and selling. According to the Tesla Chief, he would like to see bitcoin succeed. However, it seems that this former statement is in contrast to the latest announcement of the company.