In a regulatory Q2 filing, Tesla reported they sold a majority of their bitcoin holdings decreasing the company’s bitcoin reserve.
“As of the end of Q2, we have converted approximately 75 per cent of our Bitcoin purchases into fiat currency,”
The Bitcoin sale added $936M to Tesla’s balance sheet per the latest earning reports. The electric car company revealed it had tremendously decreased it’s holdings in bitcoin by 75%; the sale was meant to increase the company’s cash on hand due to the economic uncertainty in the midst of Covid shutdowns.
The company Bitcoin reserved once reported to be worth $2 billion was expected to record a loss of over $400 million resulting from the rapid collapse in the crypto market.
Bitcoin lost over 50% of its value, plunging from an all time high of around $69,000 to hovering around the $17,000 to $22,000 mark, the worst loss in more than a decade.
The market responded negatively as expected to the news of Tesla’s sale of bitcoin, the price of Bitcoin dropped over 2% within an hour.
