Due to Company’s ‘Overall Liquidity’ Tesla had Sold 75 Percent of its Bitcoin Holding
Bitcoin rebounded after falling on the news which came on Wednesday that the electric carmaker Tesla has sold off his 75 percent of its holdings of the virtual token.
HIGHLIGHTS
- Elon Musk did not sell off any of its Dogecoin
- In 2021, Tesla was accepting payments in bitcoin for less than two months
- Within this week itself, Bitcoin is found in a recovery mode
Elon Musk the Chief Executive of Tesla has cited its concerns about the reason for this particular sale which is actually the company’s 'overall liquidity.'
As per the information published on the news, it has been seen that the world's largest cryptocurrency was last up 1.04 percent at $23,494.57 (roughly Rs. 19,00,000) which after sliding reached as 0.5 percent to $23,268.92 (roughly Rs. 18,60,000).
Tesla has sold Bitcoin worth $936 million (roughly Rs. 7,500 crore) during the second quarter it has been over a year when the company has actually bought $1.5 billion (roughly Rs. 12.000 crore) of the cryptocurrency during the peak of its growth and popularity.
Elon Musk has always been an outspoken supporter of cryptocurrencies. His statements on the upcoming days of crypto and disclosures concerning his ownership of digital assets typically boost the value of Dogecoin and Bitcoin.
On the terms of Tesla's earnings decision, Musk has mentioned the primary reason for the sale which was uncertainty about the lockdowns due to COVID-19 in China, that has brought in production challenges for the company.
As Musk has mentioned, 'It was vital for us to maximize the money position.' He added that 'We are actually open to increase our Bitcoin holdings in future, thus this shouldn’t be taken as some verdict on Bitcoin. It was simply that we were actually concerned about the overall liquidity for the company.'
Musk has made it clearer that Tesla has not sell any of its Dogecoin, a meme-based cryptocurrency that he has touted.
On top of this, Tesla was accepting Bitcoin as payment for less than 2 months before stopping in May 2021. Musk has clearly mentioned that the company may resume accepting bitcoin once it conducts due diligence on the amount of renewable energy it would take to mine the currency.
From this week itself, Bitcoin has been in a recovery mode, in line with the stock market, as investors seemed to be more optimistic about the US Federal Reserve's ability to rein in decades-high inflation.
