Elon Musk has sold Tesla’s bitcoin holdings amid slump in the cryptocurrency market. The sell off reduces the automaker’s exposure to volatility risk associated with bitcoin, but it comes at a loss, IgbereTV reports
The automaker cut down its holdings by 75% in H1, according to its Q2 2022 financial statements, earning $936 million as “proceeds from the sales of digital assets”
Tesla now holds $226.5 million worth of bitcoin, based on current price of $23,307 as at the time of filing this report, reflecting declining trust, the major investor has in the most valuable cryptocurrency, which has been struggling to loosen the grip of the bears on it, considering it’s down -49.6% year-to-date, losing $23,004.17 in seven months.
Is Tesla and Elon Musk ending greater fool journey amid bitcoin loss?
On February 8, 2021, Tesla reported that it had acquired 43,200 bitcoins at the cost of $1.5 billion, and started accepting the cryptoasset as a payment option. This boosted the confidence of investors, and drove BTC value beyond its intrinsic value.
The announcement sent BTC on a bullish run above $40,000 in the rest of the year, having traded at $38,886.83 the day of the disclosure, and below $40,000 between January 1 to February 8, 2021
