Tesla sells majority of Bitcoin after turbulent crypto foray

economictimes.indiatimes.com:

Tesla Inc. sold a significant chunk of its stake in Bitcoin, an investment that helped legitimize the world’s largest electronic currency. “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in a shareholder letter Wednesday as part of the company’s earnings report. “Conversions in Q2 added $936M of cash to our balance sheet.” The electric-car manufacturer disclosed in February 2021 that it had invested $1.5 billion in Bitcoin, and subsequently sold 10% of its stake that April. Tesla said Wednesday its digital assets have shrunk to $218 million, and that a Bitcoin impairment hurt second-quarter profitability.

Did you Know?

The Shiba Inu team launched a burn portal to help address the issue of the massive supply of SHIB tokens As of June 29, 2022, more than 400 trillion tokens have been burned to cap supply

Tesla Chief Executive Officer Elon Musk said on the earnings conference call that the company sold the Bitcoin to maximize its cash position because of uncertainty related to the Covid shutdowns. He noted that the sale should not be seen as “some verdict on Bitcoin.” The cryptocurrency has retreated from a record high of almost $69,000 in November. The largest cryptocurrency by market value erased gains after the sales were disclosed, falling as much as $1.6% to $22,928. Musk has become a huge influencer in cryptocurrency. He has tweeted favorably about Dogecoin as an alternative and posted photos of his dog Floki, which like the Dogecoin mascot is a Shiba Inu. When Tesla held a massive party for its new Austin factory in April, a drone show featured a Dogecoin image. Musk’s embrace of Bitcoin had helped serve as a catalyst for