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Elon Musk’s Tesla indicated in its latest earnings report that it had sold the majority of its Bitcoin holdings sometime in the quarter, likely for a loss.
Only $218 million in Bitcoin Left
Tesla has sold most of its Bitcoin.
In its latest quarterly report Tesla revealed that it had converted “approximately 75%” of its Bitcoin holdings into fiat currency. As of June 30 the notorious electric vehicle company only had $218 million in digital assets, down from more than $1.2 billion in March.
The report stated that the Bitcoin sale had “added $936 million of cash” to the company’s balance sheet. While Tesla did not clarify how much it had lost by selling Bitcoin at lower prices than it had originally bought, it noted Bitcoin had been an “impairment” that had negatively affected profitability.
Tesla CEO and world’s richest man Elon Musk has yet to comment publicly on the sale at time of writing.
Musk originally announced his support for Bitcoin on January 29 2021 by including the name of the top cryptocurrency on his Twitter profile; a few days later Tesla revealed it had bought $1.5 billion worth of Bitcoin and was now accepting Bitcoin payments.
Tesla’s Bitcoin acquisitions were made at an average price of $31,620; while we currently do not know the exact date the company sold its holdings, nor the exact number of coins sold, Bitcoin price descended from about $47,000 to $19,000 from March 31st to June 30th, making it likely the company suffered a significant loss.
Disclosure: At the time of writing, the author of this piece owned ETH, and several other cryptocurrencies.