Tesla and founder Elon Musk have long contributed to the cryptocurrency hype. But now the automaker has sold 75 percent of its bitcoins.
of value of bitcoin has been on a real roller coaster ride for many months now. While in November 2021 the value was still more than €52,000, in July 2022 it looks very different again with less than €20,000.
With these significant fluctuations, the current news from Tesla should not be a surprise. Because the car company has with data for the second quarter also announced that it had disposed of 75 percent of its bitcoins.
Did Tesla have to make a course correction?
Back in April, Tesla praised the cryptocurrency’s “long-term potential.” in Report for the first quarter of 2022 stated that bitcoin is suitable “as a digital asset for investment as well as a liquid alternative to cash”.
But the quarterly report also contained a warning for shareholders. Because price changes can always affect profitability.
In the first quarter of 2021 alone, Tesla lost around $27 million due to cryptocurrency depreciation. On the other hand, Bitcoin sales generated roughly $128 million in profits.
The sale of bitcoins brings in a significant amount
Now Tesla has apparently decided to distance itself even more from cryptocurrency. According to the second quarter report, the “depreciation of bitcoin” had a negative impact on the company’s profitability.
The sale netted Tesla roughly $936 million. A significant portion of operating income of approximately $2.5 billion in the second quarter.
If the group still had around 43,000 bitcoins in their wallets at the end of the first quarter, the number should be significantly lower after the latest sale. According to Tesla, the remaining value is around $218 million.
Tesla and Bitcoin – A Complicated Relationship
Tesla and Bitcoin already have quite a checkered history. Back in February 2021, Elon Musk’s group invested $1.5 billion in this cryptocurrency.
The car had Meanwhile, Bitcoin has also been approved as a means of payment for its vehicles. But in May 2021, Elon Musk made another U-turn here.
The reason: the ecological balance of cryptocurrency. Musk expressed concern about the environmental impact of bitcoin mining.
Tesla and Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
But Elon Musk’s volatility should be over Back and forth since taking over Twitter be already known. So it cannot be ruled out that the richest man in the world will change his mind again on the subject of Bitcoin.