Business Today
Loading...

Elon Musk's Tesla sells 10 per cent of its Bitcoins, here is why

Elon Musk and Tesla have been among the biggest believers in cryptocurrency. However, the latter recently sold 10 per cent of its holdings in cryptocurrency.

twitter-logoIndia Today Tech | April 28, 2021 | Updated 11:50 IST
Bitcoin
Musk and Tesla have been huge promoters of Bitcoin.

Highlights

  • Tesla sold 10 per cent of its Bitcoin holdings.
  • Elon Musk's investment remains unchanged.
  • Tesla makes more money by selling Bitcoin.

Elon Musk and Tesla have been among the biggest believers in cryptocurrency. However, the latter recently sold 10 per cent of its holdings in cryptocurrency, the Tesla chief has confirmed while clarifying that his personal investment remains unchanged. The Tesla and SpaceX CEO was responding to a tweet by Barstool Sports founder Dave Portnoy, who questioned Musk's sale of Bitcoins and claimed that he had bought the cryptocurrency and made a fortune by selling it a higher price.

The tweet came after Tesla presented its first-quarter earnings report on Monday which revealed that it had sold $272 million (around Rs 2,030 crores) worth of its Bitcoin holdings.

"So am I understanding this correctly? @elonmusk buys #bitcoin. Then he pumps it. It goes up. Then he dumps it and make a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don't be last 1 #HODLing the bag," Portnoy tweeted.

To this, Musk responded saying that Tesla's decision to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.

"No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet," he replied.

Musk and Tesla have been huge promoters of Bitcoin. They have often pushed the price of cryptocurrency with their investments. Earlier this year, Tesla had bought Bitcoin worth $1.5 Billon, giving a huge vote of confidence to this crypto. Tesla CFO Zachary Kirkhorn has said that the company will continue to hold Bitcoin for the long term and reaffirmed Tesla's commitment to the cryptocurrency.

In a conference call with analysts, he said, "We do believe long-term in the value of Bitcoin. It is our intent to hold what we have long-term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles."

Interestingly, the car maker made more money from Bitcoin than its sales. In fact, one third of its total profit in the first quarter of 2021 came from Bitcoin selling. The car maker also made $518 million from selling emissions credits to other carmakers, up from $354 million a year ago.

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close