Tesla Dumps 75% of its Total Bitcoin Holdings


American electric vehicle manufacturing giant, Tesla Inc has sold off 75% of its total Bitcoin (BTC) holdings worth as much as $936 million.

The latest selloff comes off as the second time Tesla will be offloading its Bitcoin after the company sold off 10% of its holdings back in Q2 2021 when the price of Bitcoin recorded a massive upshoot at the time. Tesla realized a profit of over $101 million at the time.

It is yet unclear whether Tesla recorded any profit with the current selloff seeing the price of BTC started the Q2 at $46,000 and ended it at $19,000. The chances of profitability will thus depend on the time the company offloaded the huge chunk within the quarter.

“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position,” Musk said in an earnings call on Wednesday. “This should be not taken as some verdict on bitcoin,” he said, adding that the automaking giant is open to stacking up more on the digital currency in the near future.

Reducing Tesla Inc’s Influence on Bitcoin

Tesla bought $1.5 billion worth of BTC back in February 2021, a move that shifted the narrative of the digital asset being one that is deeply considered an alternative asset class by institutional investors. Following the Tesla buyup, a number of other corporate buyers went on an accumulation rampage.

At the time of its first acquisition, Tesla also revealed that it has started accepting Bitcoin for its products, a move that significantly sent the price of the digital currency skyrocketing at the time. Tesla shortly after stopped the buyup, noting among many things that the coin is harmful to the environment due to its Proof-of-Work (PoW) mining process.

The company, however, affirmed that it is still committed to accepting the cryptocurrency in the near future when the conditions are much better.

With the remaining holding of the Bitcoin owned by Tesla being notably small, the fears of centralization are further allayed as many now considers Tesla incapable of impacting the digital currency regarding selloff news. The selloff of today has caused a slump in the growth of Bitcoin as the digital currency is changing hands at $22,594.32, down 6.49% according to data from CoinMarketCap.

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