Tesla sells almost all of its bitcoins; China would be the reason

  • In simple calculations, Tesla sold just over 32,000 bitcoins.

  • With the sale, Tesla added about $936 million to its trust holdings.

Electric car maker Tesla, owned by billionaire Elon Musk, announced the sale of 75% of its bitcoin (BTC) holdings during the second quarter of 2022. At the very beginning of the downward trend that has come to drive the cryptocurrency prices at levels not seen in over a year.

I agree with you financial results of Tesla, published this Wednesday, July 20, 2022, the company has sold more than half of its bitcoins purchased over the past few months, which generated profits of up to $936 million on average. This, without adding more information, except that they now have $210 million in BTC.

In simple accounts, Tesla would have left about 32,000 bitcoins, taking into account that, according to Bitcoin Treasury Bonds, Tesla had about 43,200 bitcoins before the sale. Being so, the company would now have just over 10,000 bitcoins in its vaults.

Musk suggested that due to the uncertainty caused by COVID-19, as well as China’s bans, vthey lost their bitcoins with the intention of “maximizing our cash positions”.

Anyway, the CEO of Tesla He did not rule out his company accumulating bitcoins again. As he said on the call where he presented the report, “we are open to expanding our bitcoin holdings in the future.” In this way, the announced sale of the second quarter does not seem to determine a new position of this company, which in 2021 helped BTC reach an all-time high.

Tesla, which has become one of the whales of the Bitcoin market, last year acquired several thousand coins for a investment that exceeded $1,500 million, as reported by CriptoNoticias. In fact, such an investment led it to occupy the second position of companies with the most stakes in BTC for a long time, only surpassed by MicroStrategy, the company of Michael Saylor (and another of the great whales).

Although it is impossible to determine, it is possible that the massive sale of bitcoins by Tesla affected the price decline reported from the second quarter. This is because it would have generated more selling pressure, causing the price of the currency to fall against the US dollar.

In the Tesla report, it is striking that they only mentioned bitcoin a few times, despite the fact that investing in this currency had long been part of the company’s strategy.

After learning of Tesla’s sale, bitcoin corrected its price. It was a drop of almost 2%, which led it to erase the gains it had been posting for three days. After hovering above $23,800 it fell to $23,000, although it then rebounded and is trading at $23,500 at the end of this article. according CoinMarketCap

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