Tesla sold 75 percent of its Bitcoin holdings due to concerns about overall liquidity, according to Musk

Tesla sold 75 percent of its Bitcoin holdings due to concerns about overall liquidity, according to  ...

Bitcoin is recovering following a jump in value following reports that Tesla has sold 75 percent of its holdings.

After a brief sell-off late on Wednesday triggered by news that electric car manufacturer Tesla Inc had sold roughly 75 percent of its shares in the virtual token, Bitcoin recovered.

Tesla CEO Elon Musk The cited concerns about his company's overall liquidity as the reason for the sale.

After falling as much as 0.5 percent to $23,268.92 (roughly Rs. 18,60,000) on the news, the world's largest cryptocurrency was last up 1.0 percent at $23,494.57 (roughly Rs. 19,00,000).

Tesla sold $936 million (roughly Rs. 7,500 crore) in the second quarter, more than a year after the company bought $1.5 billion (roughly Rs. 12.000 crore) of the cryptocurrency at the peak of its enormous popularity.

Musk has been an outspoken supporter of cryptocurrency. His statements on cryptocurrency's future and disclosures about his ownership of digital assets often increase the price of dogecoin and bitcoin.

Musk said the primary reason for the sale was uncertainty about COVID-19 in China, which has created manufacturing difficulties for the business.

Musk said it was important for us to maximize our cash position. We are certainly open to expanding our Bitcoin holdings in the future, but this should not be taken as a verdict on Bitcoin. It is simply that we were concerned about the overall liquidity for the company.

Tesla sold none of its Dogecoina meme-based cryptocurrency, according to Musk.

Tesla accepted bitcoin as payment for less than two months before halting in May 2021. Musk has stated that the business may resume accepting bitcoin once it has completed due diligence on the amount of renewable energy it requires to mine the currency.

Bitcoin has been in a recovery phase so far this week, in line with the stock market, as investors appear more optimistic about the US Federal Reserve's ability to deal with decades-high inflation.

Thomson Reuters 2022

The use of the cryptocurrency is an unregulated digital currency, not a legal tender, and is subject to market volatility. NDTV does not intend or endorse financial advice, trade advice, or other advice or recommendation of any kind offered or endorsed by NDTV.

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