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Elon Musk’s Electric Vehicle Manufacturer Tesla sold a large amount of Bitcoin Collectibles, the company said in a statement. The company announced its second-quarter earnings, that it sold 75 percent of its bitcoin holdings, an investment that helped the world’s currently largest cryptocurrency by market capitalization, achieve that position and rapidly rise in value.
“As of the end of the second quarter, we’ve converted approximately 75 percent of our bitcoin purchases into fiat currency,” Tesla said in its shareholder letter Wednesday, as part of the company’s earnings report. “Remittances in the second quarter added $936 million in cash to our balance sheet,” she said.
Tesla stated on its balance sheet that it has net digital assets of $218 million, down from $1.26 billion in the previous quarter. Elon Musk added that its operating income and profitability for the second quarter were impacted by weak Bitcoin. Tesla also said it has added $936 million to its traditional cash flow from selling bitcoin. In the first quarter of 2021, the company’s statement showed cash flow from digital assets of $272 million.
Elon Musk said on the earnings call that Tesla sold off its Bitcoin holdings to maximize its cash position due to the uncertainty related to the Covid shutdown. He said that Tesla’s sale of cryptocurrency should not be considered a “judgment of Bitcoin.”
Tesla’s bitcoin sale comes at a time when the cryptocurrency has fallen to its lowest levels in months, dropping more than 50 percent since October of last year. Tesla disclosed in February 2021 that it had bought $1.5 billion worth of bitcoin, and then sold 10 percent of its stake in April, which was reversed in the first quarter of 2021. However, after February 2021, Tesla did not make any investments in bitcoin anymore. . The company’s earnings report shows that Tesla’s digital assets have shrunk to $218 million.
Bitcoin prices soared to all-time highs in 2021 to nearly $69,000 in November, influenced in part by the Elon Musk Cryptocurrency advocate at the time, before it took a major hit amid volatile market conditions and lost its value by 50 percent. Tesla’s investment in Bitcoin played an important role in the rapid rise in the price of the cryptocurrency. One bitcoin has been hovering around $17,000 to $22,000 for the past few months now.
Tesla has not specified how many bitcoins it initially bought or how many it has now sold, but Elon Musk hinted last year that the company may have invested in 42,000 bitcoins. The company even began accepting payments in bitcoin for a brief period, before stopping it, citing environmental concerns.
There is no Dogecoin sold by Tesla
“We have not sold any of our Dogecoin,” Musk said on the earnings conference call while explaining why he sold his Bitcoin holdings. While Tesla hasn’t said anything about its Dogecoin holdings yet, the company began accepting DOGE payments for some merchandise in January.
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