Tesla boss Elon Musk justified this massive bitcoin sale with the need to bail out cash.
betweenand the It’s an action-packed adventure. Tesla, the icon of tech startup influence, was one of the first companies to invest in Especially bitcoin. In February 2021, the American company implemented a In the first cryptocurrency, Bitcoin. At the time, Tesla promoted the “long-term potential” of these new digital currencies and acted in turn From a market primed for a peak. A year and a few months later, the manufacturer of It sold 75% of its stock for $936 million. The company’s current reserves are approximately $218 million in .
Would Tesla have become cautious in the face ofCrypto?” Elon Musk gave some answers after publishing the results. “The reason we sold a lot of our bitcoin holdings was because we didn’t know when the Covid lockdowns in China would ease, so it was important for us to maximize our cash position,” said the Tesla boss. In fact, even if China bans cryptocurrencies, the Chinese market is very important for the electricity maker.Tesla has built a giant factory there, and China is the second largest market in terms of sales after the United States.
Not a ‘verdict’ against Bitcoin, says Elon Musk
However, the chiefIt also does not bury the main cryptocurrency. “This should not be seen as a judgment on bitcoin,” he added, noting that Tesla is open to increasing its cryptocurrency holdings in the future. His influence on the cryptocurrency market continues to be particularly significant and all of his tweets on these new coins provoke the ire of the sector like no other. His simple trust in Dogecoin, with which he can make purchases of some Tesla products, allows this niche cryptocurrency to survive.
His property will likely be sold sometime in June. Thus, the market is not going through a major backlash at the moment. However, the next few days could tell us more about the market’s ability to withstand this bad news. TheThe industry forces us to step back from today’s realities, and as this story shows, a lot can change quickly.