Tesla sold over 75% of BTC reserve amid the recent downturn in the crypto market. The electric car giant currently has about $218 million in digital assets.
According to the CEO, Elon Musk, the company is still open to buying BTC in the future. Meanwhile, Musk noted that the firm did not sell its Dogecoin.
Electric Car Giant Sold Its BTC Holdings
On Wednesday, the company published the report of its earnings in Q2 2022. As per the report, the company has changed 75% of its BTC into fiat. This conversion added over $936M to the firm’s balance sheet for Q2 2022.
Furthermore, the company’s balance sheet for Q2 shows about $218 million worth of digital assets left. Before now, the total holdings were over $1.26 billion.
Additionally, Tesla said the recent Bitcoin decline had affected its Q2 operating income. Hence, over $936 million worth of digital assets can be seen in the firm’s cash flow.
The last time digital assets provided funds for the company’s operation was in 2021. At that time, digital assets contributed over $272 million.
Moreover, Tesla bought Bitcoin worth over $1.5 billion in 2021. Since then, the company has not increased its holdings. According to Elon Musk, Tesla had over 42,000 BTC as of July 2021.
Meanwhile, the electric car manufacturer had accepted Bitcoin for payment for a while. However, it suspended the option in May 2021, citing environmental issues.
Elon Musk Says Tesla Did Not Sell Its Dogecoin
According to Elon Musk, Tesla sold its BTC holdings due to the international crisis caused by COVID-19. The firm was uncertain of when the lockdown would end.
Therefore, Tesla had to sell its Bitcoin to increase its cash holdings and operating income. However, Musk hinted that the firm would buy more Bitcoin in the future to increase its holdings.
Meanwhile, the entrepreneur confirmed that Tesla sold none of its Dogecoin holdings. In January, the car company began to accept Dogecoin as payment for some products.
Before now, Musk has shown more support for the usage of Dogecoin for payment. The billionaire referred to Dogecoin as a suitable cryptocurrency for payment than BTC.
In other news, the Tesla boss is currently in a battle with Twitter. The entrepreneur had sent the crypto community ablaze when he offered to buy Twitter.
Unfortunately, the CEO ended the deal on the 8th of July, citing non-compliance on the part of Twitter. Subsequently, the social media giant sued Musk, forcing him to complete his deal. The lawsuit is set to take place in October.
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