Tesla confirmed during its quarterly report that it sold the majority of its bitcoin last quarter, around 75%. The well-known manufacturer of electric vehicles did not specify the reasons for this decision.
In February 2021, Tesla announced that it had invested $1.5 billion in the Bitcoin cryptocurrency, which at the time was about 7.7% of the company’s funds . Shortly thereafter, the automaker began accepting cryptocurrencies as payment for new vehicles, and a month and a half later changed its mind and removed the option to pay in bitcoins. Then Elon Musk explained this decision with concern due to the growth in the use of fossil fuels and the most “dirty” of them – coal. Many in the Tesla community shared these concerns when Tesla first announced its investment in bitcoin, and many were angered that the company did not think about it right away. Then the CEO of Tesla assured that the company would not sell or make any transactions with bitcoins until the network switched to more environmentally friendly energy sources. A year after the first investment in cryptocurrency – in February 2022 – the company increased the share of savings in bitcoins to the equivalent of $2 billion.
However, the collapse of the cryptocurrency market this year hit Tesla’s financial position quite hard. Elon Musk’s company, like so many others, has suffered a notable loss – last month it was reported that Tesla likely “burned” as much as $500 million on its bitcoin investment. But given the new data, it looks like Tesla could partially offset those losses. In a Q2 2022 report, Tesla confirmed that it had sold about 75% of its bitcoins.
“At the end of the second quarter, we converted approximately 75% of our bitcoin into fiat currency and added 936 million cash to our balance sheet”
from the Tesla report
With roughly $936 million of that 75% now, and another $250 million in sales at the start of its investment , when the company did a stress test of sorts, Tesla is still likely to be in the black — if it sells the remaining 25%, the amount will exceed the initial investment in $1.5 billion
Well
Java evening
After Tesla announced the sale of its bitcoins, the cryptocurrency fell in price by about $1,000 per unit, but by the morning of July 21, it had already won back a little.
Miners sell bitcoin and leave the business in an effort to maintain profits and avoid losses
