Beyond his wealth and his provocative words, elon musk He is known as one of the entrepreneurs who gave the most good news about its use. bitcoin. This led him teslaThe electric car company he manages also preferred to invest in the most popular ones in the world. cryptocurrencies. However, the crisis of virtual currencies prompted the tycoon to take a step forward and the automaker got rid of up to 75% of its crypto investment.
By the end of June, Tesla had converted about three-quarters of the Bitcoin it held into dollars, the value of which has fallen by 47% so far this year. This maneuver allowed the company to add 936 million cash to its balance sheet, thereby reducing its losses due to the devaluation of the cryptocurrency they were betting on. This is detailed in their letter to Tesla shareholders about their second-quarter earnings.
The move illustrates the contradictions of Musk, who has been publicly lecturing his followers about the potential of cryptocurrencies for months and maneuvering to withdraw that bet to avoid further losses without informing his followers when they fall. “I can be mine, but I won’t throw it away,” he said at a Bitcoin conference a year ago. ‘to hold‘ or not withdrawing money invested in an asset when it drops is a mantra repeated by the crypto community. These words were carried by the wind.
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Still, the businessman denies that this divestiture meant he lost confidence in Bitcoin. “This should not be taken as a decision about Bitcoin,” he apologized. “We were only concerned about the company’s overall liquidity given its (auto factory) closures in the US. Chinese Musk also invested some of his wealth in cryptocurrencies. Ethersecond most popular and dogecoinIt’s considered a joke.
In February 2021, when Bitcoin experienced its first major revaluation peak, Tesla announced that it had invested $1.5 billion in this cryptocurrency, a decision that contributed to this peak. Two months later, he announced that 10% of this stock had been sold. Musk’s electric car manufacturer has reduced its digital assets to $218 million with today’s decision.