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early last year crypto fever infected Tesla. The company announced that it will invest $1,500 million in bitcoin. Shortly after, he raised the bet and allowed his cars
early last year crypto fever infected Tesla. The company announced that it will invest $1,500 million in bitcoin. Shortly after, he raised the bet and allowed his cars to be bought with this cryptocurrency.
Now the tables have turned. With the world economy in trouble and cryptocurrencies losing most of what they had achieved at the end of last year, Tesla decided to lower the load. They sold 75% of the bitcoins they bought and they apparently no longer trust cryptocurrency.
Elon Musk’s idyll with cryptocurrencies had a few pits. His influence on social networks like Twitter has caused his comments on that social network to trigger the price of bitcoin and dogecoin several times, but the cryptocurrency market has been falling for months.
Within a year, we’ve increased Bitcoin from $65,000 to about $23,000 now.
Tesla’s bitcoin investment in February 2021 seemed logical: in twelve weeks, with this investment they were able to make more money than automobile production in twelve years.
Things would go even further with the rise of the cryptocurrency in the coming months, but Musk, theoretically concerned about the energy consumption involved in bitcoin mining, announced in May 2021. they stopped accepting to buy cars with that cryptocurrency.
The decline in the value of cryptocurrencies led to the company’s decision to abandon its positions in this segment. In his presentation of his quarterly results, Elon Musk said the sale was due to “not knowing when the quarantines in China will be eased due to COVID-19 and it was important for us to maximize our cash position“.
The creator of Tesla said that this decision “should not be taken as a decision about bitcoinHe said that Tesla is open to increasing its investments in cryptocurrencies in the future.
The sale of these crypto assets allowed Tesla get $936 million to improve your cash flow. Now the valuation of his portfolio is 218 million according to those responsible.
The impact on Bitcoin’s value was clear: The cryptocurrency has held its breath a bit over the past few weeks, but this selloff seems to be one of the reasons. another drop in valuealthough less obvious.
Source: Xataka
Alice Smith is a seasoned journalist and writer for Div Bracket. She has a keen sense of what’s important and is always on top of the latest trends. Alice provides in-depth coverage of the most talked-about news stories, delivering insightful and thought-provoking articles that keep her readers informed and engaged.
