Did Elon Musk sell his Bitcoin? No. Tesla CEO explains why his company sold 10% of its holding.
Elon Musk and Tesla are two of the most prominent cryptocurrency supporters. However, the latter recently sold 10% of its cryptocurrency assets, according to Tesla CEO Elon Musk, who also clarified that his personal investment remains unchanged. Musk was responding to a tweet from Barstool Sports founder Dave Portnoy, who challenged Musk's sale of Bitcoins, claiming that he had purchased the cryptocurrency and profited handsomely by selling it at a higher price.
The tweet came after Tesla released its first-quarter earnings report on Monday, which reported that the company had sold $272 million (roughly Rs 2,030 crores) in Bitcoin holdings.
“So, am I following you correctly? #Bitcoin is being purchased by @elonmusk. After that, he pumps it. It progresses upward. After that, he sells it and makes a fortune. Listen, I own one #Bitcoin, but it is not at all who we thought it was. Just don't be the last person #HODLing the bag,” Portnoy said on Twitter.
To this, Musk responded saying that Tesla’s decision to prove liquidity of Bitcoin as an alternate to holding cash after all sheet.
“No, you're not doing it. I haven't even sold a single Bitcoin. Tesla sold 10% of its Bitcoin assets “basically to demonstrate the liquidity of Bitcoin as an alternative to keeping cash after all,” he responded.
Bitcoin is heavily promoted by Musk and Tesla. Through their investments, they have often pushed the value of cryptocurrency. Tesla purchased $1.5 billion worth of Bitcoin earlier this year, signalling a huge vote of confidence in the current crypto. The Chief Executive Officer (CEO) Zachary Kirkhorn stated that the company will continue to hold Bitcoin in the future & reaffirmed Tesla's commitment to it.
“In a conference call with investors, he said, "We do expect long-term within the value of Bitcoin." It is our intention to keep what we have long-term and continue to accumulate Bitcoin from our customers' vehicle purchases.”
Surprisingly, the car company raised more money from Bitcoin than it did from sales. In reality, Bitcoin sales accounted for a third of the company's overall profit in the half-moon of 2021. Sales of carbon credits to other carmakers brought in $518 million, up from $354 million a year earlier.
