Tesla Sells Most of its Bitcoin Holdings

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Tesla Sells Most of its Bitcoin Holdings
22 Jul 2022
6 min read

News Synopsis

Tesla, which caused a stir when it disclosed a sizable investment in Bitcoin last year, has since sold off the majority of those holdings. The electric car company sold 75% of its Bitcoin, which had a value of about $2 billion (£1.7 billion) at the end of 2021.

It is pulling back as the cryptocurrency's value has plummeted, falling by more than 50% this year. Tesla claimed that it spent the $936 million (£782 million) from its Bitcoin sales on conventional money.

Elon Musk, the CEO of Tesla, has been one of the most well-known proponents of cryptocurrencies, and his comments on social media frequently spark significant trading activity. Tesla's $1.5 billion investment in Bitcoin, which was made public in February 2021, increased interest in the currency. The notoriously unstable cryptocurrency's price surged to almost $70,000 in November of last year before plummeting.

One Bitcoin now trades for less than $25,000. Tesla last year stopped taking Bitcoin as payment for its vehicles, citing worries about how energy-intensive Bitcoin mining would affect the environment.

On social media at the time, Mr. Musk declared that the business would not be selling its Bitcoin holdings. Elon Musk explained Tesla's position on Bitcoin on Twitter last year. Tesla won't be offering any Bitcoin for sale.