Tesla has sold 75% of its stake in bitcoin, worth about $2 billion by the end of 2021, amid heavy investment in the cryptocurrency.
The price of bitcoin fell, and during the investor call, Tesla CEO Elon Musk stressed that the sale was for “total capital” and did not necessarily indicate a “decision” on bitcoin.
We were only concerned with the water supply of the company that ended up in China. We haven’t sold any of our Dogecoin yet. “
When Musk and Tesla started playing around with bitcoin, it created excitement about the cyber currency, which is increasing in value. Things are off to a good start in the world.
As recently as March 29, Bitcoin was trading at $47,454. Current income taxes are $22,556.
Musk said on the call that Tesla wants to increase its financial position, explaining the sale of $936 worth of bitcoin.
The company was also responsible for supplier problems related to epidemics, which affected several other sectors and contributed to inflation. The company increased its overall revenue in the second quarter, according to Wednesday’s earnings report.
It’s been a busy summer for Musk, who came to buy social media giant Twitter before walking into the deal.
This prompted the court to take action and Twitter is trying to stop Musk from withdrawing its $44 billion offer to acquire the company.
BTC Falls as Tesla Sells 75% of its Holdings – Bitcoin Market Update News
In a tweet to his nearly 102 million Twitter followers last May, Tesla CEO Elon Musk said his company has “diamond hands” — which in crypto terms means Tesla has invested $1.5 billion in bitcoin (BTC) . . . . . forever.
So much for the so-called diamond hands, because during Tesla’s second quarter call yesterday, it was revealed that the company lost most of the bitcoins used for financing. “As of the end of the second quarter, we converted approximately 75% of our bitcoin purchases to fiat,” Tesla said in its second-quarter announcement.
The company confirmed that the sale of the bitcoins brought $936 million in cash into its bank account, but Tesla did not indicate whether the total amount resulted in a profit or loss. Ironically, as recently as March 2022, Tesla said during its first quarterly earnings release that it was committed to maintaining its crypto portfolio.
At the time of writing, the price of BTC is up 6.5% and is trading at $22,650 on the cryptocurrency exchange, up from a five-week high of $24,196, according to CoinMarketCap.
“The reason we sold some of our bitcoin is because we weren’t sure when the COVID-19 lockdown in China would ease, so we needed to increase our cash position,” Musk said in a company transcript then Wednesday. phone calls. He said this should not be considered a case with bitcoin and that Tesla is open to expanding its crypto holdings in the future.
Is Bitcoin worth buying?
Founded in 2008 and originally intended as a peer-to-peer payment alternative to government fiat currency, bitcoin has largely been repositioned as a store of value for over a decade and has strong inflation rate. However, this statement has been shattered since the price of Bitcoin peaked at $68,789 per coin on November 10, 2021. Bitcoin is down 67% from an all-time high, while the U.S. drops inflation to 67 % per month increased by more than 5% b. . . . .
How investors should deal with volatility
Cryptocurrency exchanges are nothing new, but you should feel comfortable if you decide to invest.
Ollie Leach, learned editor at cryptocurrency news outlet CoinDesk, said the volatility could be attributed to “the fact that the market is immature.” Everything from popular tweets to new federal regulations can cause prices to rise.
“When Elon Musk puts the bitcoin hashtag in his Twitter bio, it increases bitcoin by 10%,” Leach said.
This unpredictability is part of the reason why maIf there are too many emotions involved, you may shop at the wrong time and make the wrong decision,” says Yang.
If you can’t get on board and extreme dips continue to worry you, then you may have too much leverage in your cryptocurrency investments.
“The most important thing for any investor to do, whether investing in bitcoin or stocks, is not only to have a plan, but to have a plan that they can stick to,” says Douglas Boneparth, a CFP and chairman of Bone Fide Wealth . “While buying a dip can be attractive, especially in an asset you really like, it may not always be the best idea right now.”
