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Tesla Sells Majority Of Its Bitcoin Holdings Under Elon Musk

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Tesla Sells Majority Of Its Bitcoin Holdings Under Elon Musk
21 Jul 2022
5 min read

News Synopsis

Tesla that made waves in the last year when it announced a major investment in Bitcoin and has since removed the majority of its Bitcoin holdings. The car maker has sold off 75 percent of its Bitcoin that was worth approximately $2 billion (PS1.7bn) by the end of 2021.

It's retreated since the price of cryptocurrency has plummeted, dropping more than 50% in the past year. Tesla announced that it had purchased traditional currency using the $936m (PS782m) it earned from Bitcoin sales.

Tesla chief Elon Musk is among the most prominent supporters of cryptocurrency, his statements on social media regularly leading to substantial trades. Tesla's $1.5bn investment in Bitcoin which was announced in February 2021 led to a surge in demand for the cryptocurrency. The price of Bitcoin, a notoriously volatile currency, soared last year to nearly $70,000 in November. It then plummeted.

One Bitcoin currently trades in less than $25,000. Tesla has stopped last year accepting Bitcoin as a payment method for its vehicles due to concerns over the environmental impact of the energy-intensive Bitcoin mining.At the time, Mr. Musk posted via social networks his company wouldn't sell the Bitcoin it held.

Tesla announced the sale of its assets as part of its routine quarterly update. Tesla declared that Bitcoin was among the main factors that affected its financial performance. However, the company posted more profit than expected during the three months that ended June's close. the price hikes of its top-selling automobiles helped to offset the problems, such as restrictions in China.

It also stated that it will bring it would bring a "record-breaking second quarter" for the current year. Tesla has announced that its plant in China reached an all-time high in the month of March as the restrictions on Covid-19 were lifted.

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