To cope with the temporary closure of its factory in China as well as logistical challenges and inflation, Tesla, symbol of the influence of tech start-ups, sells nearly 75% of its bitcoins. The objective of this express sale is to allow the juggernaut of electric cars to have enough cash. In numbers, this bitcoin sale allowed Tesla to add $963 million to its cash flow.
While Elon Musk’s market company had created a general surprise in 2021 by buying an equivalent of 1.5 billion dollars worth of bitcoins in full bullish fashion, it is with great regret that the firm has sold 75% of its reserve. . A decision made during the second quarter of 2022 to prevent lockdowns in chine do not penalize its financial results.
It should be noted that Tesla sold its cryptocurrencies has a average price of $29,000.
As a reminder, in February 2021 Tesla had strongly encouraged Americans to buy their electric cars with virtual currencies. Before retracting very quickly, pointing to the mining power consumption. The big boss of the firm had however undertaken to reintegrate the payment by bitcoin as soon as the miners will have massively turned to renewable energy.
Unfortunately, between Tesla and bitcoin, the adventure remains eventful. After, the sale of part of its bitcoins in March 2021 for an amount of 128 million dollars. Tesla has just sold almost all of its reserve this time. In total, the firm’s current reserves amount to approximately $218 million in bitcoin.
What impact on the price of bitcoin?
After flirting with 70,000 dollars in 2021, the price of bitcoin has not stopped faltering since the beginning of June to find itself below the 20,000 dollar threshold. And one thing is for sure, bitcoin has led to many more designs virtual in his fall.
Nevertheless, despite this massive sale of Tesla, the price of the queen of cryptocurrency now remains stable. Currently, bitcoin sells for around $23,000. For now, the market is not suffering much backlash.
Nevertheless, Elon Musk’s reversal could well cause a wave of panic among investors in the coming days. Worse, this decision could influence many other companies to part with their bitcoin holdings. Massive resales that could definitely pull the valuation of cryptocurrencies down.
In any case, Elon Musk indicates that this sale should not be considered as a verdict on bitcoin. It’s just a strategy to secure financial results of the company. In addition, the firm indicates that in the future it will be able to increase its holdings of cryptocurrencies.