Tesla sells its bitcoins

75% of the Bitcoin that Elon Musk's electric car firm held has been sold.

According to Tesla's most recent earnings report, which was made public on Wednesday, about three-quarters of its bitcoin holdings have been liquidated, bringing $936 million in cash to the company's balance sheet.

According to the company's financial report, as of the end of Q2, "we have converted about 75% of our Bitcoin acquisitions into fiat currency."

During a call with Tesla investors on Wednesday, CEO Elon Musk emphasized that the sell-off "should not be viewed as some verdict on Bitcoin." He added that in light of the "uncertainty of the Covid lockdowns in China" at the time, the action was necessary to maximize the cash position and enhance liquidity.

According to prior disclosures, Tesla invested a total of $1.5 billion in Bitcoin in the first quarter of 2021, moving up to the second-largest position among corporations, according to analytics company CoinGecko. The business even announced that it will take Bitcoin as payment for its automobiles, but two months later, Musk abruptly changed his mind, citing environmental concerns.

Musk told investors, "We have not sold any of our Dogecoin," and added that Tesla is still willing to increase its cryptocurrency holdings in the future, despite suffering a loss of almost $106 million from the liquidation.

The Austin, Texas company's shares increased 1.5 percent to $753.40 in extended trading on Wednesday after it announced a better-than-anticipated $2.26 billion net profit for the quarter.

After hearing the news, Bitcoin dropped to about $23,000, but it started to rise again after Musk's justifications. The cryptocurrency market has previously been impacted by the billionaire's decisions and remarks several times, with some crypto investors accusing him of manipulating the market with his tweets.

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