The world’s largest electric car manufacturer, Tesla Inc., on Wednesday, released its second quarter (Q2) financial earnings report revealing the sale of 75% of its total bitcoin worth billions of dollars. The company disclosed that the sale added $936 million in cash to its balance sheet.
Tesla Dumps Bitcoin
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet,” Tesla said.
The automaker noted that the remaining bitcoin on its balance sheet is worth around $218 million, as reported in previous quarters.
Tesla is one of the publicly-traded companies with the largest amount of bitcoin on its balance sheet. The firm disclosed in a U.S. Securities and Exchange Commission (SEC) filing in February 2021 that it purchased $1.5 billion worth of bitcoin.
The company later sold 10% of the total bitcoin holdings after making some gains. After the sale, Tesla revealed that it still had around $1.26 billion worth of the crypto asset.
However, the 2022 Q2 report shows that Tesla sold its BTC at a loss as the digital asset is currently trading below the purchased price. The company invested in Bitcoin when the cryptocurrency was trading at around $33,000.
A Change of Heart?
Tesla’s CEO, Elon Musk, is one of the most popular crypto proponents influencing market trends. In July 2021, the billionaire said that he owned bitcoin, ether, and doge, adding that he might pump prices, but he doesn’t dump them.
“I might pump, but I don’t dump … I definitely do not believe in getting the price high and selling or anything like that. I would like to see Bitcoin succeed,” he said.
However, the Tesla CEO may have had a change of heart as his company dumped a larger percentage of its bitcoin stash amid the crypto winter.
Last year, the electric car company accepted bitcoin as a payment method for specific products. However, Musk later revealed that Tesla will no longer accept bitcoin payments, citing the “increasing use of fossil fuels for Bitcoin mining and transactions.”
The billionaire noted that Bitcoin’s high energy consumption goes against Tesla’s mission to protect the environment.
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