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Tesla Sold 10% of Its Bitcoin Holdings, Says Elon Musk | Finance Magnates

source-logo  financemagnates.com 27 April 2021 03:42, UTC

Elon Musk, CEO of Tesla, confirmed on Twitter that the world’s largest electric-car maker has sold around 10% of its Bitcoin holdings. The move was made to check the liquidity of the world’s largest cryptocurrency.

According to the Tweet, Musk has not sold any of his Bitcoin yet. The latest comments from Musk came as a response to accusations of Dave Portnoy who criticized Tesla’s Bitcoin pump and dump moves.

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“So, am I understanding this correctly? Elon Musk buys Bitcoin. Then he pumps it. It goes up. Then he dumps it and makes a fortune. Listen I own 1 BTC but bitcoin is exactly who we thought it was. Just don’t be last 1 HODLING the bag,” Portnoy Tweeted.

“I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of BTC as an alternative to holding cash on the balance sheet,” Musk replied.

In February 2021, Tesla revealed its $1.5 billion investment in the world’s most valuable digital currency. The company started accepting Bitcoin as a mode of payment for its products including Model S, Model 3, Model X, Model Y, and Cybertruck.

Impact of Bitcoin Sale on Tesla’s Q1 Results

According to the latest financial results posted by Tesla, the company saw a positive impact of Bitcoin sales on its Q1 2021 results. The world’s largest electric-car maker generated net proceeds of $272 million from the recent BTC sale. “Tesla seems to be selling around $56,000, and buying $33,500, gaining 272 million and making 101 million profit. Musk said that the sale was to prove the value of Bitcoin’s liquidity. BTC has not been affected by the news and is still rising moderately,” crypto researcher Wu Blockchain mentioned on Twitter.

The world’s largest cryptocurrency is back above the $1 trillion market cap. The overall market cap of digital currencies is up by more than $100 billion in the last 24 hours.