Tesla, an electric vehicle manufacturing firm led by its popular CEO, Elon Musk, has sold 75% of its Bitcoin holdings. The value of Bitcoin (BTC) at the time of sale is pegged at $936 million, based on its Q2 earnings report.
The value of the Bitcoin holding sold in December 2021 was estimated to be around $2 billion (£1.7 billion). At the moment, the value has halved. Musk blames the “Bitcoin impairment” for negatively affecting profitability in the second quarter, with an operating income of $2.5 billion.
The sale of a portion of the company’s Bitcoin holdings improved its balance sheet by a whopping $936 million. The sale increased Tesla’s cash and cash equivalent positions.
When news of the sale hit the crypto market, it negatively affected the value of Bitcoin (BTC), making it drop from over $24,000 to $22,771.79 at the time of writing, according to CoinMarketCap.
Elon Musk has become a well-known figure in the crypto space, with his public support for the popular memecoin, Dogecoin, and having a volatile relationship with Bitcoin. The decision by Tesla to sell 75% of its Bitcoin holdings has elicited mixed reactions from the cryptocurrency market.
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