Tesla has backed off from its bitcoin investment. The electric car company sold 75% of its Bitcoin holdings in the second quarter.
The financial disclosure report of Tesla revealed that the company made $936M in cash by selling off the BTC off the balance sheet.
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency.”
In March, Tesla owned $1.261 billion worth of digital assets. However, after liquidation, the firm is left with $218 million in digital currency holdings.
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The revelation of Tesla dumping most of its bitcoin holdings hasn’t had any serious implication on the crypto market so far. Bitcoin is trading at $23K which is a significant improvement from the last week.
The CEO of Tesla, Elon Musk is one of the biggest and most popular proponents of cryptocurrency. He strikes a chord with Crypto bros. Nevertheless, the notion of his tweets causing sudden pump and dump in the market is criticized by many in the crypto community.
Tesla’s investment in Bitcoin made a splash in the Crypto world. The financial disclosure report from early 2021 that Tesla had invested $1.5 Billion in bitcoin. This kind of huge institutional investment led BTC to $45K.
What does it Mean for Crypto?
The cryptocurrency community is fairly tight-knit. The lack of support from traditional financial institutions has made crypto fragile and volatile. However, as we see the rise of a new investor base or ‘diamond hands’ in crypto parlance.
Tesla backing off from BTC investment is not likely to have a long-term impact on crypto. If anything, it will make digital assets less dependent on institutional investments.