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Tesla breaks even on Bitcoin sale, Musk confirms no Dogecoin was sold

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Tesla has published a report for the second quarter of 2022. financial report July 20, which showed that the company sold 75% of its bitcoin holdings, earning $936 million in the process.

“As of At the end of the second quarter, we converted approximately 75% of our bitcoin purchases into fiat currency. Conversions in the second quarter added $936 million in cash to our balance sheet.”

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However, during an investor follow-up call, the Tesla CEO Elon Musk stated that the company did not sell its Dogecoin.

Tesla sells 75% of its Bitcoin holdings

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In response to the news, the reaction of the crypto community was generally negative. For example, some Twitter users made fun of Musk’s previous posts about having diamond hands. While others came up with a new meme – “hand salad“.

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Meanwhile, Max Keyser posted a video from last year’s Bitcoin Miami conference in which he repeatedly said “we don’t sell” and “fuck Elon” while on stage with Michael Saylor.

The video was a response to Musk’s concerns about bitcoin. environmental impact and solution stop accepting bitcoins to buy a car. At the time, this coincided with a 50 percent drawdown in the price of BTC.

Tesla reportedly 42,000 bitcoins moving into the second quarter, leaving a balance of 10,500 at the end of the quarter. According to @BTC_ArchiveMusk said he was ready to accumulate more in the future.

Quoting Musk, co-host of the Inside Bitcoin podcast, Neil Jacobs, said the sale was made to bolster the company’s cash position due to uncertainty in China over lockdown restrictions. “This should not be taken as a condemnation of bitcoin.”

Calculations show that the average sale price per token was $29,714, which means that the sale (or sales) likely occurred around the time of the Terra Luna scandal in early May.

According to Zero hedge, the average purchase price of a token by a company was $30,000. Thus, Tesla was selling at about the breakeven price.

The automaker posted a profit of $2.26 billion this quarter, down 32% from the previous quarter. Tesla shares traded relatively flat but closed 1% higher at $742.50 on Wednesday.

Holding on to Dogecoin

Musk It was previously reported that he personally owns Bitcoin, Dogecoin and Ethereum, while Tesla owns Bitcoin and Dogecoin. The Tesla boss said he supports DOGE because “poor people” call him to do it.

During a telephone conversation with investors for the second quarter on July 20 Musk said: “We have not sold any of our Dogecoins; we still have it.”

The automaker’s balance sheet showed $218 million worth of digital assets. Technical crisis performed “math on a napkin”, determining that Bitcoin is between $197 million and $213 million of that amount. This means that Dogecoin accounts for between $5 million and $21 million. At the upper limit, this will equate to approximately 304 million DOGE at the current price.

Note. Tech Crunch based its calculations on the price of BTC on June 30th. According to International Financial Reporting Standards, cryptocurrencies regarded as an intangible asset with an indefinite useful life. This means that they are not amortized, but are assessed annually for impairment. The report does not reveal details of the cryptocurrency valuation process.





Credit : cryptoslate.com

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