Tesla has converted roughly 75% of its bitcoins into fiat currency. After the cryptocurrency sale, the electric vehicle company became the owner of $218 million worth of digital assets. “We are certainly open to increasing our Bitcoin holdings going forward,” said Tesla CEO Elon Musk, adding: “WWe have not sold any of our dogecoins.”
Tesla sold about 75% of its bitcoin holdings
Elon Musk’s electric car company Tesla released its second-quarter earnings and loss on Wednesday. The company wrote:
As of the end of the second quarter, we had converted approximately 75% of our bitcoin purchases into fiat currency. Transformations in the second quarter added $936 million in cash to our balance sheet.
Tesla’s balance sheet for the second quarter shows net digital assets of $218 million, up from $1.26 billion in the previous quarter. The company also said its second-quarter operating profit was impacted by the depreciation of bitcoin.
The electric vehicle company’s cash flow statement shows $936 million in digital asset sales. The only other time Tesla’s cash flow report showed sales of digital assets was in the first quarter of 2021. At the time, sales revenue was $272 million.
Tesla bought $1.5 billion worth of bitcoin in early 2021 and hasn’t bought again since. The electric vehicle company has never disclosed the number BTC he owns. However, Musk hinted last July that Tesla owns roughly 42,000 bitcoins.
The company also briefly adopted BTC for payments, but suspended it last May, citing environmental concerns. Last October, Tesla told the SEC that it could resume accepting cryptocurrencies. Musk subsequently stated that Tesla would resume accepting bitcoin when “reasonable (about 50%) clean energy usage by miners is confirmed with a positive future trend.” However, at the time of writing, Tesla has not resumed taking BTC.
Elon Musk: Tesla hasn’t sold Dogecoin and is ‘definitely open to increasing our holdings in bitcoin in the future’
Musk explained why Tesla sold most of its BTC in a conversation with analysts on Wednesday.
“It should be mentioned that the reason we sold some of our bitcoin holdings was because we didn’t know when Covid restrictions in China would ease. Therefore, it was important for us to maximize our cash position given the uncertainty of the Covid quarantine in China,” the Tesla boss elaborated, elaborating:
We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as a condemnation of bitcoin. It’s just that we were concerned about the company’s overall liquidity given the Covid shutdowns in China. And we haven’t sold any of our dogecoins.
Tesla has never bought dogecoin for its balance sheet. However, in January, the company began accepting DOGE for certain items. Musk has previously said that he sees bitcoin as a store of value, while dogecoin is more suitable for payments.
In a February filing with the U.S. Securities and Exchange Commission (SEC), Tesla said, “We may increase or decrease our holdings of digital assets at any time depending on business needs and our view of market and environmental conditions… We believe in the long-term potential of digital assets both as an investment and as a liquid alternative to cash.”
Musk is currently in a legal battle with Twitter Inc. He offered to buy the social networking platform for $44 billion, but officially canceled the deal on July 8. Twitter subsequently filed a lawsuit against Musk to force him to go through with the deal. A trial in the case is scheduled for October.
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