Tesla has decided to sell around 75% of all the bitcoin holdings that it has. However, this isn’t likely to have an impact regarding whether different firms will decide to add cryptocurrency to their treasuries. It’s important to note that the CEO of Tesla, Elon Musk, hasn’t gone so far as to abandon his position on BTC. During a conference call for the company, he went on to say that he looked forward to once again increasing the BTC holdings his company had, sometime in the future.
Tesla’s Bitcoin Sale
Through its sale, Tesla also managed to make a minor profit. This is even as bitcoin prices have witnessed a decline over the last few months. In January of 2021, the company first bought bitcoin that was worth around $15 billion. This is when the cryptocurrency was being sold for around $33,000. Within the first quarter alone, Tesla ended up selling around 10% of these holdings, in order to generate a profit.
The bitcoin sale from Tesla could easily be seen as a way to raise cash that’s needed for corporate purposes. Pat Larsen, co-founder of ZenLedger said that Tesla trying to free up cash shouldn’t be seen as something surprising. This due to the fall in stock price, as well as the economic environment that has become uncertain. Larsen went on to say that he thinks other corporations will also be adding BTC to their treasuries in the future. This will happen as the US Congress continues to pass regulations regarding cryptocurrency.
