Tesla sold US$936 M of its Bitcoin holdings in Q2
Electric car manufacturer Tesla sold most of its Bitcoin holdings into fiat currency, according to the company’s Q2 2022 earnings report released on Wednesday.
Per the report, Tesla ‘converted approximately 75% of [its] Bitcoin purchases into fiat currency,’ as of Q2 2022 netting a $106 million cost to the profit and loss included within restructuring expenses linked to staff reductions. ‘Conversions in Q2 added $936M of cash to our balance sheet.’
‘The reason we sold a bunch of our Bitcoin holdings was that we were uncertain when the COVID lockdowns in China would alleviate,’ Tesla CEO Musk explained on the earnings call. ‘So it was important for us to maximize our cash position, given the uncertainty of COVID lockdowns in China.’
The news comes as Tesla’s Q2 profit fell 32% from record levels in Q1, with a US$ 2.26 billion net profit and after laying off around 10% (229) of its staff members.
The company initially bought US$ 1.5 million worth in Bitcoin in February 2021 and accumulated US$ 1.261 billion worth of digital assets in its books.
Despite the selloff, Musk stated that Tesla will increase its crypto holdings in the future. ‘This should not be taken as some verdict on Bitcoin," he said, and added that Tesla has not sold any of its Dogecoin.
Musk also claimed that Tesla may resume accepting Bitcoin as payment again if its mining industry shifts toward renewable energy.
‘It’s a side show to the side show … The fundamental good of Tesla and the reason we’re doing this is to have the day of sustainable energy come sooner. That’s our goal. We’re neither here nor there on cryptocurrency.’ he added.