Reports: Tesla goes bearish on Bitcoin, sells off 75 percent of its holdings
July 21, 2022 11:35 AM
The well known electric car maker Tesla, reported on Wednesday in their earnings report the sale of 75% of its holdings ($936 million worth of Bitcoin) in the second quarter.
At the end of March, the worth of digital assets Tesla had in its books was $1.261 billion. For three consecutive quarters, Tesla's net Bitcoin holdings were relationship stable. After the liquidation, $218 million in digital asset is now owned by the firm, accord to the finance statements.
In March 2021, Tesla sold a part of its Bitcoin reserves and turning over a net profit of $128 million. CEO Elon Musk, at that time, expressed that the 10% sale of Tesla's holdings was actually to "provide liquidity of Bitcoin as an alternative to holding cash on balance sheet"
With this disclosure of Tesla's finance statements regarding the sale of a major part of its digital assets, it is not uncommon for traders and investors to be vigilant and watch to see if this sale will have no effect, short term or long term bearish effect on Bitcoin's price.