Tesla, which made waves last year when it revealed a major investment in Bitcoin, has now sold off most of its holdings of the cryptocurrency. So, at what price did Tesla sell Bitcoin?
At What price did Tesla sell Bitcoin?
Electric car maker Tesla (TSLA) sold $936 million worth of bitcoin (BTC). CEO Elon Musk said during Tesla's earnings call that the company sold the majority of its bitcoin to maximize its cash position, "given the uncertainty of the COVID lockdowns in China ." He added, however, that Tesla is open to boosting its bitcoin exposure in the future, and "this should not be taken as some verdict on Bitcoin." Musk also said Tesla had not sold any of its dogecoins.
Bitcoin's price fell
The price of bitcoin fell about 1.7% to $23,300 immediately following the earnings report's release but rebounded to its previous levels after Musk commented on the earnings call.
Tesla sells 75% of its holding in Bitcoin
Tesla finished the second quarter with just $218 million in Bitcoin (BTC), up from $1.26 billion in the previous three quarters. The company said it realized a gain from the sale of its holdings that was offset by the remaining bitcoin impairment, resulting in a net charge of $106 million to its income statement.
The company had around 42,000 bitcoins at the beginning of the quarter. So he sold 75% of that amount for $936 million, the average selling price per bitcoin would be around $29,000. Bitcoin ended the second quarter at a price of around $18,700. This means Tesla avoided significant depreciation of its holdings by selling early in the quarter.
Tesla and Bitcoin
The company began accepting bitcoin as payment for vehicles last March, but Musk reversed that decision about six weeks later, citing concerns about the environmental impact of bitcoin mining.
Hopefully, this "Tesla sold most of its Bitcoin: What Price Did Tesla Sell Bitcoin?" article can provide you with a better understanding of the topic.
