Elon Musk and Bitcoin
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The electric car manufacturer Tesla announced in February 2021 to invest 1.5 billion dollars in the digital currency bitcoin. Soon after in April, the Tesla company sold ten percent of its bitcoin portfolio. There are now reports that Tesla has previously sold a significant portion (75%) of its bitcoin portfolio.
Tesla reported Wednesday that the company’s digital assets fell by $218 million and that bitcoin’s continued slide in the crypto bar hurt the profit-making supplier in the second quarter.
Let us tell you that Elon Musk’s company Tesla’s investment in bitcoin helped legalize the world’s largest electronic currency in many countries of the world. After Tesla’s investment, the price of bitcoin also increased greatly, but now the situation has changed. In light of this, Tesla has sold a large portion of its investment in bitcoin.
In a letter sent to the company’s shareholders on Wednesday, Tesla Inc. At the end of the second quarter, the company has converted 75 percent of its investment in bitcoin to the flat currency, which means that the company has withdrawn the invested amount in bitcoin.
The company, while sharing its earnings report to shareholders, reported that the company generated $936 million in cash in the second quarter due to a reduction of up to 75% in its bitcoin portfolio.
The company’s CEO Elon Musk said during a conference call about the company’s earnings that the company decided to sell a large part of bitcoin to deal with the uncertainty that arose after the Corona crisis and to increase the company’s liquidity position. At the same time, Musk has also said during this time that people should not make their assumptions about bitcoin after seeing this decision from the company.
Let us tell you that the cryptocurrency bitcoin hit a high of $69000 in November last year, but since then it has registered a steady decline. Following the news of Elon Musk’s company Tesla selling shares in its bitcoin, bitcoin is trading at a level of $22928, down 1.6 percent.