As such, this is the second time Tesla has sold its Bitcoin holdings. This time, the amount of Bitcoin sales are converted to cash, and there is no added buying. After this move, Tesla liquidated about 75% of Bitcoin purchased earlier in 2021 (worth up to $1.5 billion).
The company first sold Bitcoin in Q1/2021, equivalent to about $272 million at that time. The sale is supposed to test the liquidity of the market as well as expand the investment portfolio of this electric vehicle.
This company used to accept Bitcoin as a payment method. However, not long after that, Tesla CEO Elon Musk removed the biggest crypto, citing concerns about Bitcoin mining’s effects on the environment.
Tesla Could Lose up to $500 Million after Selling Bitcoin in Q2/2022
Going back in time when Tesla first bought $1.5 billion worth of Bitcoin in January 2021, the price of Bitcoin fluctuated from $32,000 to $33,000. The volatility of BTC price in Q2 ranged between $17,700 – $47,000. As Tesla sold Bitcoin during this time, it is calculated that they would lose up to $500 million.
Tesla’s stock price is up 0.6% to $741.03 at the time of this writing but is down nearly 40% from its November 2021 peak.
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