Tesla sells off most of its bitcoin holdings
American electric car maker Tesla, which reported a major investment in bitcoin last year after nearly doubling the price of the cryptocurrency, said it has gotten rid of 75% of its bitcoins, which were worth about $2 billion at the end of 2021.
Elon Musk has retreated on that front as well after the price of the cryptocurrency fell more than 50% this year. The Tesla boss was one of the most prominent proponents of cryptocurrencies, and his statements on social media often spurred significant trading activity.
Tesla's $1.5 billion investment in bitcoin, revealed in February 2021, has sparked a surge in demand for the currency. The price of the infamous volatile cryptocurrency soared last year to almost $70,000 in November before crashing.
One bitcoin is currently trading for less than $25,000.
Last year, Tesla stopped accepting bitcoin as payment for its cars, citing concerns about the climate impact of energy-intensive bitcoin mining.
Whether it's promising unmanned technologies, building hyperloops, building Martian starships, or buying social media companies, Mr. Musk's claims don't always come true. And yet, so far, all this has not hurt his business career.
Tesla announced the sale of assets as part of its regular quarterly update. It states that bitcoin was one of the factors that influenced its profitability. However, the company reported higher-than-expected profits in the three months to the end of June as higher prices for its best-selling vehicles helped offset problems, including restrictions in China.
Tesla shares are down nearly 40% this year.