Tesla announced Wednesday night in their second-quarter earnings statement that it sold approximately 75% of its Bitcoin possessions. The automotive company said it gained $936M in cash by selling its Bitcoin holdings.
As the value of cryptocurrency continues to fall, Tesla is backing away from a company that it invested $1.5 billion in February 2021. Tesla CEO Elon Musk was at the forefront of this investment by not only advocating for Bitcoin and other cryptocurrency companies like Dogecoin but taking to social media to promote them.
Musk and Tesla have not cut ties entirely with Bitcoin completely, with Musk adding that Tesla is open to increasing its stock in Bitcoin in the future. Tesla’s primary goal currently is to speed up the transition to renewable energy, which makes Musk describe cryptocurrency as a “sideshow to the sideshow” and “not something we (Tesla) think about a lot.”
The company was so intertwined with Bitcoin that its buyers were even able to buy cars using the cryptocurrency up until May 2021. Since Tesla announced its decision on Wednesday night, Bitcoin’s value has dropped from over $24,000 to slightly above $23,000.
