The reason why Tesla sold almost all of Bitcoin

 Elon Musk said Tesla sold 75% of Bitcoin bought two years ago due to concerns about "overall liquidity", but will buy back in the future.


he financial report on July 20, Tesla CEO Elon Musk said that the main reason why the company sold a large amount of Bitcoin to raise $ 936 million was due to the "uncertain business environment" because of Covid-19 created. the company's production challenges.

"It's important to us to maximize the cash position," Musk said.

A Bitcoin coin model. Photo: Reuters
A Bitcoin coin model. Photo: Reuters

He asserted, the company is not running away from cryptocurrencies. "We are certain and willing to increase our Bitcoin holdings in the future. So it shouldn't be considered judgmental. It's just that we're concerned about overall liquidity," he said.

After the announcement of Musk and Tesla, Bitcoin fluctuated slightly. The digital currency rose 3% to $24,000 per coin, but then dropped to $22,000 per coin.

According to the US billionaire, he and Tesla have not sold any of their Dogecoin holdings. Previously, he confirmed owning Bitcoin, Ethereum, Dogecoin and will not sell these coins.

In February 2021, Tesla spent $1.5 billion buying Bitcoin and selling 10% two months later, citing "liquidity testing". The Bitcoin that the company bought once generated a profit of more than a billion dollars after a few months of investment. According to one statistic, a month of "playing" Bitcoin of Musk's company is then more profitable than selling electric cars in a year. However, last month, the price of this cryptocurrency plummeted, costing the company an estimated $600 million.

Musk has consistently expressed interest in Bitcoin and Dogecoin since last year. Tesla once claimed to allow customers to buy electric cars with Bitcoin. However, they later changed their minds citing concerns about the environmental impact of mining this cryptocurrency.

Late last year, Musk announced that Tesla was accepting payments in Dogecoin. In April, when he announced his intention to buy Twitter, he also considered using Dogecoin to pay for the paid service Twitter Blue. In early July, he went on to say that customers can use the cryptocurrency when using the Loop tunnel system in Las Vegas.

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