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CRYPTOCURRENCY

Tesla sold most of its holdings of cryptocurrency

Tesla sold most of its holdings of cryptocurrency
The Siliconreview
21 July, 2022

Tesla had made a huge wave when last year it revealed its significant investment in Bitcoins; it has now sold most of its holdings, saying Bitcoin was one of the reasons that hurt its profitability

The electric car giant Tesla has offloaded 75% of its Bitcoin, that worth about $2bn at the end of 2021. But now, it is seen that the company is backing off as the value of the cryptocurrency has fallen by more than 50% this year. Tesla said it is backing away as Bitcoin is one of the factors that is hurting its profitability and bought traditional currency with the $936m from its Bitcoin sales.

In February 2021, Tesla revealed its $1.5bn investment in Bitcoin, raising the currency's demand. Last year the cryptocurrency's price soared notoriously to almost $70,000 in November. After crashing, now it trades for less than $25,000. Citing the concern of the climate impact of intensive energy used in Bitcoin mining, Tesla stopped accepting Bitcoins as a car payment.

Tesla's boss Elon Musk tweeted to highlight Tesla's position on Bitcoin. He also said that Tesla would not sell Bitcoins. However, Elon Musk's pronouncements don't always come to pass, whether it's a promise to buy a social media platform or produce a driverless car. The World's wealthiest person's word can move the market: but it seems they are not set in stone.