coinculture.com
According to new financial disclosures released on Wednesday, Tesla sold the most of its Bitcoin (BTC) holdings in the second quarter.
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“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” Tesla said in its quarterly report. “Conversions in Q2 added $936M of cash to our balance sheet.”
Tesla’s net Bitcoin holdings have been relatively stable for three consecutive quarters. Tesla had $1.261 billion in digital assets on its books by the end of March. Following the liquidation, the company now has $218 million in digital asset exposure.
The electric vehicle maker sold a portion of its BTC reserves in March 2021, earning a net profit of $128 million. Elon Musk, CEO of Tesla, said at the time that the company had sold off 10% of its holdings in order to “prove the liquidity of Bitcoin as an alternative to holding cash on balance sheet.”
Just two months prior, in January, Tesla became one of the largest corporate holders of Bitcoin after purchasing $1.5 billion in BTC. The purchase was disclosed in a filing with the US Securities and Exchange Commission in February. Tesla had plans to accept BTC payments at the time, but those plans were later cancelled due to concerns about Bitcoin’s energy consumption.
For its fiscal second quarter, Tesla reported adjusted per share earnings of $2.27 on revenues of $16.93 billion. Automotive gross margins fell compared with the first quarter and a year ago because of inflation and increased competition for electric vehicle components like battery cells.