Tesla’s Q2 earnings report reveals that Elon Musk’s car company has sold 75% of its bitcoin holdings, worth $936 million. According to the report published on Wednesday, the sale was categorised as “proceeds from the sales of digital assets.”
The electric car company is well-known for investing in cryptocurrency, putting billions into bitcoin, dogecoin, and other crypto assets. Additionally, Elon Musk has included a portion of his wealth in cryptocurrencies to ride the crypto market wave.
Tesla’s Current Bitcoin Holdings Drop to Millions
The current bitcoin holdings are currently way down from their previously reported $1.26 billion. Nevertheless, the 75% sales brought the firm’s current bitcoin holdings to $218 million.
Bitcointreasuries revealed that Tesla had 43,200 BTC, and the entire acquisition cost for the electric car company’s BTC holdings is $1.5 billion. Of course, this was on the assumption that no bitcoin was bought or sold. However, the reports prove otherwise, as the company sold over 75% of its bitcoin holdings.
Brian Johnson, a Barclays analyst, stated that Tesla would pay a $460 million non-cash impairment charge once the second quarter ends, assuming that no bitcoin was bought or sold by the firm from January 2021.
Following the news of Tesla’s bitcoin sales, bitcoin dropped in value and is currently trading at $23,169. BTC had crossed the $24,000 level today as it showed signs of recovery.
Tesla, which was thought by many that it would HODL on to their bitcoin, proved otherwise. It is unclear whether Tesla is planning to buy the dip.