It’s a known fact that Tesla and cryptocurrencies, especially Bitcoin have been correlated for a long time. Early in 2021, when Tesla started to accept cryptocurrencies as the mode of payment, the company made its first investment of $1.5 billion in Bitcoin.
However, according to second-quarter earnings reports from Elon Musk’s car company Tesla, the company sold 75% of its Bitcoin holdings, worth $936 million.
The company’s earning reports which were published on July 20 have classified this sale as proceeds from the sale of virtual currencies.
Elon Musk and his company Tesla are known for their cryptocurrency investments due to their billions in investments made in Bitcoin and other cryptocurrencies. Furthermore, Elon Musk plays a pivotal role in the price movements of the crypto market.
Meanwhile, due to 75% sales, Tesla’s Bitcoin holdings have dropped drastically. Today, the company’s holdings have decreased from its last reported $1.26 billion to $218 million.
According to data shared by Bitcoin Treasures, Tesla previously had 43,200 BTC and the total cost of buying Bitcoin holdings from Elon Musk’s car company is $1.5 billion.
Elon Musk To Buy The Dip?
A Barclays analyst, Brian Johnson claims that Tesla was supposed to make a payment of $460 million non-cash destruction as quarter 2 nears. This claim was made with the belief that there were no purchases or sales made by the company since January 2021.
However, after Tesla announced that it was selling 75% of its Bitcoin holdings, the price of Bitcoin declined and is currently selling at $22,926 with a drop of 2.40% in the last 24 hours. Prior to this drop, the flagship currency broke through the price level of $24,000 in the early morning hours.
Tesla has failed to keep up with everyone’s belief that the firm will hold on to its Bitcoin investments. Though Elon Musk claimed to increase the company’s Bitcoin holdings, it’s still not sure if Tesla is looking to buy
