Tesla CEO Elon Musk reveals why the electric carmaker sold a large chunk of its Bitcoin (BTC) holdings.
In a second-quarter earnings call, Musk said Tesla sold a large chunk of its bitcoin to raise cash amid uncertainty in one of the electric carmaker’s key markets and manufacturing hubs.
“It should be noted that the reason we sold a bunch of our bitcoin holdings was because we were unsure of when the Covid-19 lockdowns in China would ease. Therefore, it was important for us to maximize our cash position given the uncertainty of the Covid-19 lockdowns in China.”
Tesla sold three-quarters of its Bitcoin holdings, raking in nearly $1 billion in the quarter ended June 30.
“By the end of Q2, we converted approximately 75% of our Bitcoin purchases into fiat currency. Second quarter conversions added $936 million in cash to our balance sheet.”
As of June 30, the total value of Tesla’s remaining bitcoin was $218 million.
While the world’s richest person leaves open the possibility that Tesla could add more bitcoin in the future, he says the electric carmaker’s Dogecoin (DOGE) holdings have remained untouched.
“We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as a judgment on bitcoin. It’s just that we were concerned about the company’s overall liquidity given the Covid-19 lockdown in China. And we haven’t sold any of our Dogecoins.”
According to Musk, crypto assets are a “sideshow to the sideshow” for Tesla.
“Tesla’s goal is to accelerate the advent of sustainable energy. Cryptocurrency is a sideshow to the sideshow. Cryptocurrency is something we don’t think much about.”
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