Tesla sold 75% of BTC reserves: ‘No judgment on Bitcoin’

Car manufacturer Tesla sold 75% of the bitcoins on their balance sheet in the second quarter of this year, the quarterly figures show. Approximately $218 million in BTC has not been sold and remains on the company’s balance sheet.

According to a quarterly report from Tesla, the sale brought in $936 million. The average selling price per bitcoin was estimated to be around $29,000 USD – believed to be about 9% lower than the average buying price.??

Tesla purchased about 42,000 BTC for $1.5 billion last year. Two months later, the company sold about 10% of it for $272 million to test the liquidity of the market.??

The remainder was still worth $1.261 billion at the end of March 2022. Three quarters of that was sold in the second quarter and $218 million worth of BTC is still on the balance sheet.

Market conditions

CEO Elon Musk said during a meeting that the sale was decided due to concerns about market conditions and the company’s liquidity.

?ǣThe reason we sold a lot of our bitcoin holdings is because we were uncertain about when the COVID lockdowns in China would ease,?ǥ Musk explained. “So it was important for us to maximize our cash position.”

He stressed that the sale is “not a judgment on Bitcoin.” ?ǣWe are certainly open to expanding our bitcoin reserves in the future,?ǥ said Elon Musk. Yet he also points out that Bitcoin is not a priority for Tesla, but an afterthought.

Elon Musk

Last year, Elon Musk was in the spotlight for some time after declaring at the beginning of the year that he is a supporter of Bitcoin.

Shortly after, Tesla’s investment in bitcoin was announced and Musk announced that the company’s electric cars could be paid for in bitcoin. The latter turned out to be short-lived because less than two months later, Tesla canceled the payment option due to concerns about the climate impact.

Musk, known for his social media pranks, then seemed increasingly focused on dog altcoins. He has since fallen out of favor with much of the Bitcoin community.

SpaceX

Last year during The B-Word conference, Elon Musk let slip that not only Tesla had put bitcoin on the balance sheet, but that his aerospace company SpaceX and himself had also invested in bitcoin.

Unlike Tesla, SpaceX is not a publicly traded company and therefore does not publish quarterly public figures. It is therefore unknown how large SpaceX’s position was and whether sales took place. It is also unknown from Elon Musk how much bitcoin he owns in a personal capacity

Read more about Elon Musk and Tesla? Then take a look at our previous articles!

 

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