Despite selling 75% of its Bitcoin holdings in July, Tesla is one of the largest holdings of the popular cryptocurrency. The company still holds $218 million in Bitcoin.
In documents released on Wednesday, Tesla’s Bitcoin holdings remain unchanged from Q2 of 2022. Elon Musk had said the EV maker, during the Q2 investor call, sold its Bitcoin to free up cash as COVID-19 lockdowns continue in China. He explained that it was important for Tesla to maximize its cash position.
Moreover, Musk’s plans to acquire Twitter and the ensuing legal battle over wanting to back off the deal did not affect Tesla’s stance on crypto. 2021 saw Musk supporting cryptocurrencies. He tweeted about various digital currencies, including Dogecoin and Shiba Inu. But then the crypto winter set in. During the Q2 earnings call, the billionaire said Tesla’s main goal is to accelerate the transition to sustainable energy. He called Bitcoin a sideshow to a sideshow.
When Tesla had pumped millions into Bitcoin, Musk said it was a matter of becoming more flexible, diversifying, and picking up returns from its cash holdings. The electric car manufacturer then went on to sell 10% as the currency ran up – contributing $101 million of profit in the period.
Furthermore, Musk had plans for a new social media company based on blockchain and payments. In a text message exchange with entrepreneur brother Kimbal Musk on April 9, he said users of the new social media platform which he had in mind have to pay a tiny amount to register their message on the chain, which will cut out the majority of spam and bots.