Why did you, Elon, give up? Tesla has sold 75% of its bitcoins
Elon Musk, the electric car manufacturer, sold most of its bitcoins in the second quarter, according to a financial report published on July 20.
"As of the end of the second quarter, we converted about 75% of previously purchased bitcoins into fiat currency," Tesla said in its quarterly report. "The conversion allowed us to gain $936 million in the second quarter."
According to the financial report, the number of bitcoins owned by the company remained virtually unchanged for three consecutive quarters. By the end of March, Tesla had $1.261 billion worth of digital assets on its balance sheet. After the sale of bitcoins, the balance of digital assets decreased to $218 million.
As reported by Hash Telegraph, in the first quarter of 2021, Tesla sold part of its bitcoins, receiving a net profit of $ 101 million. At the time, CEO Musk explained that the sale, which amounted to 10% of Tesla's deposit, was carried out in order to "prove the liquidity of bitcoin as an alternative to storing fiat money." The billionaire also stressed that he himself has not sold a single bitcoin belonging to him.
Just a couple of months earlier, in January, Tesla became one of the largest corporate holders of cryptocurrencies, acquiring bitcoins worth $ 1.5 billion. Information about the purchase was disclosed in a February declaration filed with the U.S. Securities and Exchange Commission (SEC), after which the bitcoin exchange rate exceeded $44 thousand for the first time in history. At that time, Tesla also planned to accept payment in bitcoins, but these plans were later canceled due to concerns about the energy intensity of mining.
In June of this year, it became known that as a result of the development of the bear phase of the market, Tesla lost about $ 500 million on its investments in bitcoin. The losses of another major corporate cryptocurrency investor, MicroStrategy, reached $900 million at that time. However, then it was about an unrealized loss. Now Tesla has fixed part of this loss.
In the financial report for the second quarter, Musk's company reported revenue of $16.93 billion. Compared to the first quarter and the previous year, gross profit in the automotive industry decreased due to inflation and the growing shortage of some components of electric vehicles, in particular, batteries.
https://coin-signal.com/cryptonews/why-did-you-elon-give-up-tesla-has-sold-75-of-its-bitcoins/
#75, #Bitcoins, #Cryptonews, #Did, #Elon, #Give, #Sold, #Tesla, #Up, #Why, #You
#CryptoNews