In the second quarter (Q2) of this year, Tesla sold 75% of its Bitcoins and got $936 million in cash. This is because the economy is in trouble and cryptocurrencies are falling apart.
Last year, Tesla put $1.5 billion into Bitcoin and said that it would be willing to accept Bitcoin as payment.
Elon Musk, the CEO of Tesla, told investors at the company’s second-quarter (Q2) earnings conference that the company sold off a lot of its Bitcoin because ” we were uncertain as to when the COVID lockdowns in China would alleviate”.
Because COVID lockdowns in China were hard to predict, it was important for us to make the most of our money. We are certainly open to increasing our Bitcoin holdings in future. So this should not be taken as some verdict on Bitcoin,” he said.
Musk was worried about the company’s total cash flow because of the shutdowns in China.
He went on to say, ” And we have not sold any of our Dogecoin.”
Zachary Kirkhorn, Tesla’s Chief Financial Officer, said that the company converted most of its Bitcoin holdings to fiat currency for a realized gain, which was “offset by impairment charges on the remainder of our holdings, netting a $106 million cost to the P&L included within restructuring and other”.
After being positive about Bitcoin for less than two months, Tesla stopped accepting it as a way to pay for its electric cars, citing concerns about the environment.
Musk then said that Tesla wouldn’t sell Bitcoin, but instead would use it to buy and sell things once mining moved to cleaner energy sources.
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