This Wednesday (20), Tesla sold 75% of its Bitcoin reserves, equivalent to nearly $1 billion. Hours later, the company’s CEO, Elon Musk, shared the reasons for the sale and what he thinks about bitcoin.
For the richest man in the world, cryptocurrencies are a “show on its own”, but he was open to investing in Bitcoin again in the future, stating that the sale is “not a verdict”.
Although Bitcoin showed a strong price recovery, the news cooled the market, causing the cryptocurrency to fall by 7% in the past 24 hours. In any case, many believe the decline was small for the size of the news, maintaining the optimism.
Elon Musk talks about Tesla selling bitcoin
Everyone surprised this Wednesday (20) Tesla selling 75% of its position in Bitcoin, after the amount was converted to dollars in the second quarter of 2022. Hours later, Elon Musk explained the reason for the sale in a conference call.
“We were just concerned about the company’s overall liquidity because of the shutdowns in China.”
Going further, he also stated that cryptocurrencies are a “show apart” and that this topic is not the real focus of Tesla, today the largest manufacturer of electric cars in the world.
“Tesla’s fundamental goal and the reason we’re doing this, which is my main motivation here, is that renewable energy is coming sooner,” Elon Musk claimed after Tesla sold bitcoins. “This is our goal. We are not that focused on cryptocurrencies.”
Tesla can buy Bitcoin again in the future
In any case, the billionaire made it clear that the sale was not the end of this story between Tesla and Bitcoin. Therefore, it is possible that the company will shake up the Bitcoin price again in the future.
“We are certainly open to increasing our holdings of bitcoin in the future, so this should not be taken as a judgment on bitcoin.”
In addition to Bitcoin growing as an alternative to gold as a store of value, another major reason for his speech may have been the liquidity of the market. After all, Tesla must have had no problem selling nearly $1 billion dollars in Bitcoin, that is, it’s an asset asset.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
