Elon Musk’s Tesla sold $936 million worth of bitcoin
According to a number of sources, including Tesla’s earnings call the revelation that Tesla had sold a sizable amount of its assets for an average price of $28,880. This is a considerable 9 percent discount from its average entrance price of $31,620. It had already caused a stir in the cryptocurrency market.
According to Tesla’s preliminary profits report, they liquidated $936 million worth of bitcoin at a price of $28,880. This is in line with the dramatic decline in Bitcoin prices we witnessed last month. A series of liquidations drove BTC all the way down to the $17,800 mark. Musk’s business informed the media that the lack of positive cash flow is the reason they sold digital asset holdings. Musk’s company held Bitcoin through the ATH and ultimately sold it at a loss.
Tesla still holds 25% of its Bitcoin and, according to Musk, plans to increase its holdings in the future, supporting the non-Bitcoin-centric reasons for selling its holdings. The cryptocurrency market does not appear to be very concerned with these developments.
One of the primary drivers of the gains in Dogecoin and Bitcoin was Musk and his business. The CEO of SpaceX is still optimistic about decentralized technologies and thinks that they will somehow play a role in the future. The absence of trading activity and capital inflows results in a lack of volatility. It also contributes to the market’s relatively tranquil response.
The huge transaction itself was unable to significantly affect the market today. This was because it performed back in June when Bitcoin and other cryptocurrencies were trading at record lows. Elon Musk chooses to do so with the approval of Tesla’s board of executives. The board of Tesla had to insist that the business also take profits. This is a useful technique to demonstrate to the market the financial success of Tesla’s Bitcoin-related strategy. Tesla ultimately only sold 10% of its Bitcoin. There are still about 40,000 of them in the company. Given that Tesla has withheld this information, an exact number is difficult to provide. I think the real news is elsewhere. Reading Elon Musk’s tweet announcing that he hasn’t sold his Bitcoin is interesting.
According to this, Elon Musk may have some Bitcoin. He has never before divulged this information, but he has done so now. Regarding everything else, there is no worry about Tesla making money. This had no effect on the price of bitcoin, as we could observe.
