Tesla has sold 75% of its Bitcoin holdings, earning $936M News โธ Bitcoin โธ Investments
Tesla has sold 75% of its Bitcoin holdings, earning $936M
Tesla revealed that its Bitcoin trade brought $936 million to its balance sheet.
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Updated: Aug. 3, 2022 at 11:56 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tesla on July 20 revealed that it sold 75% of its Bitcoin (BTC) holdings in the second quarter of 2022.
According to the electric car maker shareholder’s deck, its Bitcoin trade brought $936 million to its balance sheet.
Reports had predicted that Tesla’s Bitcoin holding was going to record an impairment loss of over $400 million because of the record crash of the crypto industry.
Bitcoin lost around 58% of its value in the second quarter, its worst loss in over a decade.
Meanwhile, the company said its total revenue grew by 42% year-on-year in the second quarter to $16.9 billion.
Tesla’s operatingย income also improved on the year-on-year metric to $2.5 billion, however, it added that the income was impacted by its Bitcoin impairment, and other reasons.
The Elon Musk-led company bought $1.5 billion worth of Bitcoin in 2021 when the asset was trading around the $30,000 range.
The company later sold 10% of its holdings in the first quarter of 2021. Since then, it did not buy or sell any of its holdings until 2022’s second quarter.
The electric car maker also briefly accepted payments for its vehicle in the flagship digital asset before abruptly halting the scheme due to environmental concerns.
Tesla’s stock reportedly rose by over 4% after hours.
Bitcoinโs price has reacted negatively to the news crashing by over 2% on the 1-hour time frame to $23,205, according to CryptoSlate data.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
South African-born Elon Musk has founded several companies, including X.com (which later became PayPal), SpaceX and Tesla Motors.