Categories: Economy

Elon Musk’s Tesla sells off 75% of its Bitcoin holding in a big setback to cryptocurrency

<p>
Elon Musk-controlled Tesla has revealed that it sold off 75 percent of its Bitcoin holding, worth $936 million. The disclosure comes as a major setback for the cryptocurrency which had gained legitimacy because of the huge investment by Tesla and Musk’s support.</p>
<p>
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency," Tesla said in a shareholder letter on Wednesday as part of the company’s earnings report. “Conversions in Q2 added $936M of cash to our balance sheet."</p>
<p>
The electric-car manufacturer disclosed in February 2021 that it had invested $1.5 billion in Bitcoin, and subsequently sold 10% of its stake that April. Tesla said on Wednesday that its digital assets have shrunk to $218 million, and that a Bitcoin impairment hurt second-quarter profitability.</p>
<p>
However, Musk, one of the most eminent business personalities to promote cryptocurrencies and who keeps everyone guessing about his next move,  has also indicated he may buy bitcoin again in the future.</p>
<p>
In his company's earnings call on July 20, Musk said Tesla selling bitcoin should not be considered as "some verdict" on the digital currency, Coindesk reported.</p>
<p>
Musk cited concerns about his company's overall liquidity as the reason for the sale. He claimed that the company sold the Bitcoin to maximize its cash position because of uncertainty related to the Covid shutdowns</p>

IN Bureau

Recent Posts

INS Arnala, India’s first indigenous Anti-Submarine Shallow Water Craft, commissioned into Navy

In a major boost to India's coastal defence capabilities, the Indian Navy on Wednesday commissioned…

59 minutes ago

UN Rights Chief flags China over Tibet, Xinjiang abuses; calls for release of detainees and legal reform

Volker Turk, the UN High Commissioner for Human Rights, on June 17 expressed concern over…

2 hours ago

G7 Canada: PM Modi highlights India’s 4A approach to energy security, hails AI as “critical tool” to boost efficiency, stresses need for green initiatives

Prime Minister Narendra Modi addressed the G7 Outreach Session on the theme 'Energy Security: diversification,…

4 hours ago

“PM Modi firmly told Trump that India has never accepted mediation, will never accept it”, Foreign Secy Misri

Prime Minister Narendra Modi held a telephonic conversation with US President Donald Trump on the…

6 hours ago

Axiom-4 mission rescheduled launch to June 22

The launch of Axiom Mission 4, the fourth private astronaut mission to the International Space…

6 hours ago

“Did not have any proof of effort to move into a nuclear weapon”: IAEA Chief on Iran

The Embassy of Iran in India on Wednesday shared a statement made by the Director-General…

7 hours ago