Elon Musk, boss of Tesla, justified this massive sale of bitcoin by the need to bail out cash.
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Between Elon Musk and the Bitcoin, it is an eventful adventure. Tesla, a symbol of the influence of tech start-ups, was one of the first to invest in cryptocurrencies especially bitcoin. In February 2021, the American company carried out a $1.5 billion investment in the first cryptocurrency, Bitcoin. At the time, Tesla touted the “long-term potential” of these new digital currencies and acted as catalyst of a market poised to peak. A year and a few months later, the manufacturer of electric cars sold 75% of its hoard for $936 million. The company’s current reserves stand at approximately $218 million in bitcoin.
Would Tesla have become cautious in the face of “thewinter crypto”? Elon Musk gave some answers after the publication of the results. “The reason we sold off a lot of our bitcoin holdings is because we didn’t know when the Covid lockdowns in China were going to ease, so it was important for us to maximize our cash position,” said the boss of Tesla. Indeed, even if China has banned cryptocurrencies, the Chinese market is extremely important for the electric manufacturer. Tesla has built a giant factory there and China is the second largest market in terms of sales behind the United States.
Not a “verdict” against bitcoin, says Elon Musk
However, the boss of You’re here nor does it bury the flagship cryptocurrency. “This shouldn’t be seen as a verdict on bitcoin,” he added, noting that Tesla is open to increasing its cryptocurrency holdings in the future. His influence on the cryptocurrency market remains particularly important and each of his tweets on these new currencies agitates the sector like no one else. Its simple trust in Dogecoin, with which it is possible to make purchases for certain Tesla products, allows this niche cryptocurrency to survive.
The sale of his holdings likely took place sometime in June. The market is therefore not undergoing a major backlash for the moment. However, the next few days could tell us more about the market’s ability to withstand this bad news. The speed industry forces us to take a step back from today’s realities, and as this story shows, a lot can change quickly.
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