Tesla sells 75% of its bitcoin holdings, price volatility

E-car maker Tesla has sold 75 percent of its bitcoin holdings. The company on Wednesday shared its balance sheet, which shows that the company has reduced its digital assets by 75%. According to the report of the second quarter of the year, Tesla now has about $218 million (about Rs 1,742 crore) worth of cryptocurrencies left. Tesla bought bitcoins worth $1.5 billion (about Rs 12,000 crore) in February 2021, taking the price of the top cryptocurrency to new highs.

According to the news agency Reuters, the world’s most popular cryptocurrency had a major fall in price after the news of the company selling 75 percent of its bitcoin holdings, after which the coin recovered from the fall. Tesla Chief Executive Elon Musk cited concerns about his company’s “overall liquidity” as the reason for the sale, the report said.

Tesla sold bitcoin holdings worth $ 936 million (about Rs 7,500 crore) in the second quarter of the year, after which the company now has $218 million in assets left. As we mentioned, the company bought $1.5 billion worth of cryptocurrency in February last year, when Bitcoin’s performance was at its peak.

According to Gadgets 360 Crypto Price Tracker, the current price of Bitcoin is Rs 18.31 Lakh.

Elon Musk has been a strong supporter of cryptocurrencies. His statements on the future of crypto and the revelations that he invests in digital assets often drive the prices of Dogecoin and Bitcoin.

According to the news agency, on Tesla’s earnings call, Musk said the main reason for the sales was uncertainty about the COVID-19 lockdown in China, which has created production challenges for the company.

“It was important for us to maximize our cash position,” Musk said. He continued, “We are certainly prepared to increase our bitcoin holdings in the future, so this should not be taken as a final decision on bitcoin. It is just that we were concerned about the overall liquidity for the company.” “

Musk said Tesla has not sold anything from its Dogecoin holdings.

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