Tesla has sent shock waves throughout the crypto industry after selling 75% of its Bitcoin holdings.
“As of the end of the second quarter, we have converted approximately 75 percent of our Bitcoin purchases into fiat currency,” said Tesla in a shareholder letter on Wednesday.
However, the CEO of Binance Exchange, Changpeng Zhao, has a different take on it.
In his recent tweet, CZ downplayed the worthiness of Tesla’s recent Bitcoin sale and claimed that this sale is just like “a drop in the ocean.” Per him, more than $100 billion worth of Bitcoin is traded in a single day- Tesla has sold just near $ 1 billion, which is a trivial amount.
There is a noise in the industry after the leading e-car manufacturer liquidated $936 million worth of Bitcoin during the second half of 2022. During a conference, Elon Musk attributed crypto as just a “sideshow.” He clarified that this sale was not a “verdict” on Bitcoin.
However, spirits are not dampened in the crypto sphere. On the contrary, Bitcoin enthusiasts can foresee a silver lining and a positive aspect to this situation. As Tesla’s holdings fell dramatically, the company’s volatile CEO will not be able to influence the price of the cryptocurrency easily. With Tesla’s decision, these big names will not make Bitcoin a part of their corporate Balance Sheets either.
Tesla reported that it owns net digital assets worth $218 million, which came down from $1.26 billion in the last quarter. Elon Musk added that an impairment in Bitcoin has impacted the company’s year-on-year operating income and profitability.
By selling BTC holdings, the company could add $936M worth of cash to its balance sheet.