Elon Musk-owned Tesla has sold 75% of its Bitcoin holdings for $936 million, an investment that was worth $2 billion at the end of 2021, and $1.26 billion at the end of the first quarter of 2022.
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” said Tesla in a shareholder letter on Wednesday, as part of its company earnings report.
“Conversions in Q2 added $936M of cash to our balance sheet,” it said.
Tesla revealed that the value of its remaining ‘digital assets’ is now worth $218 million.
The report also stated that the company’s income and profitability were impacted due to its Bitcoin holdings.
“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position,” Musk said in an earnings call on Wednesday.
“This should be not taken as some verdict on bitcoin,” he said, adding that Tesla is open to increasing its crypto holdings in the future.
In February 2021, Tesla disclosed a $1.5 billion Bitcoin acquisition, which then drove up the price of Bitcoin. 10% of said investment was cashed out in the first quarter of 2021 itself.
When Tesla stopped accepting Bitcoin as a mode of payment last year, Elon Musk had said that the company would not be selling the Bitcoin it owned.
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