Tesla Dumps Bitcoin – Will The Company Continue To Hodl Dogecoin Or Liquidate In Near Term?

The market value of cryptocurrencies is still greater than $1 trillion, despite the fact that electric vehicle (EV) manufacturer tesla tesla - Automobile disclosed that it sold $936 million worth of Bitcoin (BTC), or 75% of its holdings, during the second quarter. Despite this, the market valuation of all cryptocurrencies worldwide is still $1.03 trillion, down 2.52 percent from the previous day, with the Tesla announcement appearing to have an influence on the market.

The price of Bitcoin dropped by approximately 2 percent after the earnings report was released, and as of July 21, the leading digital asset is presently trading below $23,000. However, following Musk’s comments on the results call, the price of Bitcoin quickly climbed back to its previous levels.

Is this Tesla’s Verdict on Bitcoin?

Regarding the company’s earnings report, elon musk elon musk Elon Musk is a well-known entrepreneur and inventor, widely recognized for his role in founding or leading several major companies, including Tesla, SpaceX, Neuralink, and The Boring Company. He’s also known for his ambitious goals around space exploration, electric vehicles, and the future of humanity. Musk is often a polarizing figure, admired for his innovation and vision, while also drawing criticism for his management style and controversial statements. The U.S. became the primary base for Musk’s career, and the tech scene in California played a significant role in shaping his professional trajectory.     Personal Info:Organization: Ledger.Location: United States.Graduation: Musk earned two bachelor’s degrees, one from the College of Arts and Sciences in Physics and another from the Wharton School of Business. In Economics    Experience: Zip2 Corporation, Co-founder X.com and PayPal Co-Founder & CEO SpaceX CDEO & Chief Engineer Tesla. Inc. CEO, Product Architect Neuralink co-founder, CEO The Boring Company Founder, CEO   NAsales@teslamotors.com EntrepreneurInvestorChief Executive Officer stated on July 20 that Tesla sold the majority of its Bitcoin to maximize its cash position.

“We are certainly open to increasing our Bitcoin holdings in future, so this should not be taken as some verdict on Bitcoin. It’s just that we were concerned about overall liquidity for the company, given the Covid shutdowns in China. And we have not sold any of our Dogecoin.”

Tesla held a total of $218 million in Bitcoin at the end of the second quarter, which is a sharp decline from the $1.26 billion it had in Bitcoin over the three quarters prior. At the beginning of the quarter, Tesla had about 42,000 Bitcoin; if 75% of them were sold for $936 million, the average selling price for each Bitcoin would be around $29,000.

By selling earlier in the quarter, Tesla avoided a substantial impairment charge on its holdings because the price of bitcoin at the end of the second quarter was close to $18,700. Notably, Tesla continues to own over 10,000 Bitcoin.

Tesla was rumored to have purchased $1.5 billion worth of bitcoin in February 2021, which directly led to a rise in the price of bitcoin. The company increased its profit by $272 million after selling 10% of its Bitcoin assets later in the first quarter. The most recent statement revealed that it has not bought or sold Bitcoins.