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Electric car manufacturing company Tesla sold most of its Bitcoin holdings in the second quarter, according to its Q2 earnings report released on Wednesday.
Tesla Cashes Out 75% Of Its Bitcoin Holdings
In its latest earnings report, released Wednesday, Tesla revealed it has sold 75% of its Bitcoin holdings this quarter for approximately $963 million.
"As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet," the company wrote.
In an earnings call, the company's executives said the reason for the sale was a desire to maximize cash positions during the uncertainty of China's COVID lockdowns.
"We are certainly open to increasing bitcoin holdings in [the] future. So this should not be taken as some verdict on Bitcoin. It's just that we were concerned about overall liquidity for the company given COVID shutdowns in China," Tesla CFO Zachary Kirkhorn said.
The electric vehicle company invested $1.5 billion in Bitcoin in February 2021, after changing its investment policy in January to allow it to hold digital assets. At the time, it was seen as a very bullish move, so much so that BTC hit a new all-time high of $43,000 during that period. The company further announced that it would soon accept Bitcoin as payment for its vehicles. Later in May 2021, Musk suddenly announced that Tesla would stop accepting it as payment, citing concerns over the environmental impact of Bitcoin mining. https://twitter.com/elonmusk/status/1392602041025843203