Elon Musk’s Tesla Inc has decided to take a loss, sells 75% of its Bitcoin holdings amid rumors the company has a liquidity problem. After China issued strict measures to control the new round of Covid-19 outbreak in China, causing the car assembly plant to be temporarily closed.
from the revelation of coin telegraph According to Tesla Inc., it has sold 75% of its Bitcoin holdings. worth more than $936 million.
“At the end of Q2 this year, Tesla has sold approximately 75% of the Bitcoin we hold. This has increased our balance sheet with $936 million in cash.” Tesla said in its second-quarter earnings release on Wednesday (July 20).
However, Tesla said in its statement that Bitcoin was one of the factors affecting the company’s profitability during the second quarter of this year, which Tesla CEO Elon Musk said. It is one of the famous people who support cryptocurrencies. He frequently posts messages on Twitter and has resulted in strong spikes in cryptocurrency prices, including Bitcoin and Dogecoin.
Tesla revealed in February 2021 that it had invested up to $1.5 billion in Bitcoin. which from such news This led investors to buy Bitcoin as it continued to support the Bitcoin price, soaring to nearly $70,000 in November 2021 before its subsequent collapse. Currently, the Bitcoin price is hovering below $25,000.
Meanwhile, in 2021, Tesla announced it would suspend the company’s bitcoin payments for goods and services, citing concerns about its environmental impact. Because Bitcoin mining requires a lot of electricity.
In addition, thetimes also commented that due to the situation of the COVID-19 virus outbreak in China, China has taken strict measures to control the epidemic. As a result, the industrial group had to stop the production line. This is one of the reasons that impacts Tesla’s financial liquidity. Therefore it is necessary to sell Bitcoin at a loss. To use the money to enhance liquidity during the impact of the closure of automobile assembly plants in China
At the same time, in the The electric car maker’s profits were higher than expected. After prices of some of the company’s best-selling cars were raised has partially compensated for the impact of the Shanghai production disruption. The company has finalized its rehabilitation plan in the next few months. The management told the shareholders that “Focus on the second half of 2022, which will make a big comeback and break the record set.”
With news of Tesla selling 75% of its holdings, the Bitcoin price fell below $24,000 earlier this morning. After surging past $24,000 for the first time in a month yesterday.