Tesla, which made waves last year by revealing a large amount of investment in Bitcoin, has now sold the majority of it’s holding in bitcoin.
The electric car manufacturing company (Tesla) sold 75% of its stake in Bitcoin, worth around $2 billion (£1.7 billion) by the end of 2021. It retreated as the value of the cryptocurrency market was wiped out by more than 50% this year. Tesla revealed that they bought the traditional currency with $936 million (£782 million) from the money received by selling the stake of bitcoin.
Tesla owner Elon Musk is one of the most significant crypto champions, as it is witnessed that just with his statements on social media significant trading activity has been recorded in the instruments. Tesla’s disclosed an investment of $1.5 billion in Bitcoin, revealed in February 2021,resulted into a spike in demand for the coin. The price of the most famous coin in cryptocurrency last year spiked to nearly $70,000 in November before the downside move.
Tesla also denied accepting bitcoin for payments for its cars last year, citing concerns about the climate impact of energy-intensive bitcoin mining.
At the time, giving an assurance statement to the public Mr Musk said on social media that the company would not sell the Bitcoins they were holding.
Tesla shared the share sale as part of a regular quarterly update. And the reason disclosed to sell the stake was that Bitcoin was performing as a major factor affecting Tesla’s profitability.
However, the company posted better-than-expected profit for the three months to the end of June as price increases on its best-selling cars helped offset challenges including car locking in China.
He also promises a “record second half” of the year.