Tesla sells 75 percent of its bitcoins, sticks to Dogecoin

Elon Musk’s company Tesla has divested 75 percent of its Bitcoin holdings because Tesla “needed the money.”

Tesla has announced its first figures for the second quarter of 2022. These show that the company is struggling with inflation and the current economic climate. The car company is now also changing its strategy with regard to cryptocurrencies, the company has sold 75 percent of its Bitcoin holdings, as The Verge reports.

Last year, Tesla invested around $1.5 billion in bitcoin and announced that it would accept bitcoin as payment. Tesla started accepting bitcoin in late March 2021, but quickly backtracked from its original strategy.


Tesla Sells Large Holdings of Bitcoin But Keeps Dogecoins

Now follows the complete reversal: In a note to investors, Tesla managers say that the company has sold 75 percent of its Bitcoin holdings, bringing around $936 million in funds to the current balance sheet, and states that that the value of its remaining “digital assets” is approximately $218 million.

However, Tesla CEO Elon Musk does not want the sale to be understood as a “judgment on Bitcoin”. Rather, the holdings were sold because Tesla is “concerned about the company’s overall liquidity given the COVID shutdowns in China.” Tesla needed the money. Musk also stated that his Dogecoins had not been sold and described the “Memecoin” as “a minor matter of minor importance”.

You can find Tesla’s entire financial report as a PDF here.

Also interesting:

Dogecoin investor is suing Elon Musk for $258 billion

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