It’s a known fact that Tesla and cryptocurrencies, especially Bitcoin have been correlated for a long time. Early in 2021, when Tesla started to accept cryptocurrencies as the mode of payment, the company made its first investment of $1.5 billion in Bitcoin.
However, as per Elon Musk’s car company Tesla’s Q2 earnings reports, the firm has sold 75% of its Bitcoin holdings, worth $936 million.
The company’s earning reports which were published on July 20 have classified this sale as proceeds from the sale of virtual currencies.
Elon Musk and his company Tesla are known for cryptocurrency investment due to its billions of investments made in Bitcoin and other cryptocurrencies. Also, Elon Musk plays a vital role in the crypto market’s price movements.
Meanwhile, due to 75% sales, Tesla’s Bitcoin holdings have dropped drastically. Today, the company’s holdings have decreased from its last reported $1.26 billion to $218 million.
According to the data shared by Bitcoin Treasures, earlier Tesla had 43,200 BTC and the total cost of purchase for Elon Musk’s car company’s Bitcoin holdings stands at $1.5 billion.
Elon Musk To Buy The Dip?
A Barclays analyst, Brian Johnson claims that Tesla was supposed to make a payment of $460 million non-cash destruction as quarter 2 nears. This claim was made with the belief that there were no purchases or sales made by the company since January 2021.
However, after the news of Tesla’s 75% sale of its Bitcoin holdings, the Bitcoin price declined and at the moment it is selling at $22,926 with a plunge of 2.40% over the last 24hrs. Prior to this drop, the flagship currency had crossed the $24,000 price level in the early hours.
Tesla has failed to keep up with everyone’s belief that the firm will hold on to its Bitcoin investments. Though Elon Musk claimed to increase the company’s Bitcoin holdings, it’s still not sure if Tesla is looking to buy