Elong musk Tesla sold 75% of Bitcoins and added $936 million in cash to its balance sheet in the second quarter, Q2 this year, as it dealt with an economic meltdown amid crypto-currencies falling off the cliff.
Tesla made a $1.5 billion investment in Bitcoin and announced that it would accept Bitcoin as payment, last year. In the second phase or quarter of the earnings, Tesla CEO Elon Musk said that the reason the company sold a bunch of its Bitcoin holdings, was that they were even unsure as to when the COVID lockdowns in China would ease. So it was important for them to maximize their cash position, given the uncertainty of the COVID lockdowns in China. They are open to increasing our Bitcoin holdings in the future. So this should not be taken as some result of Bitcoin. Additionally, they have not sold any of their dogecoins.
The chief financial officer at Tesla Zachary Kirkhorn said the company converted a majority of Bitcoin holdings to Fiat for a realized gain, offset by impairment charges or the worthless goodwill on the remainder of our holdings, bringing a cost of $106 million to the P&L included within restructuring and other.
After less than two months of going optimistic on Bitcoin, Tesla applied brakes on the popular cryptocurrency as a payment mode to buy its electric vehicles, citing environmental harm.
The electric car maker will not sell any Bitcoin and has aim to use them for transactions as soon as mining moves to more sustainable energy, Elon Musk further said.