Ever since the bull run of 2021, the crypto space has been in a whirlwind of events taking place. Starting from the market crash to Tesla being on the news for so many events including the two crypto assets it has kept in its treasury; the infamous Dogecoin and Bitcoin.
Back in July of 2022, the electric car manufacturer, in its quarterly report mentioned that they have sold about 75% of its Bitcoin holdings in order to raise cash, a piece of very shocking and interesting news for investors all around the globe. However, in the third quarter, Tesla (TSLA) has not sold any of its remaining bitcoin holdings nor purchased any additional bitcoin, according to the latest earnings report shared by the company on Wednesday. The report from Elon Musk’s Tesla showed that the value of its digital assets remained at $218 million, which was the same as it was at the end of the second quarter report.
In the time span between the two quarters, Tesla also mentioned that the Bitcoin holdings by the company have not seen any impairment charges as Bitcoin has maintained a pretty stable value, which is slightly below the $20,000 mark. According to a CoinDesk report, Tesla CEO Elon Musk had mentioned on the company’s second-quarter earnings call that the sale of its 75% BTC holdings was made because of “the uncertainty of the COVID lockdowns in China,”. He also noted that Tesla is open to boosting its bitcoin exposure in the future and that the sale “should not be taken as some verdict on bitcoin.” The price of bitcoin fell about 1.7% on the initial news at the time, but soon regained its losses after Musk’s remarks on the call.
Previously, in February 2021, when Tesla announced that it had bought $1.5 Billion worth of Bitcoin, the news boosted the value of Bitcoin. Following the purchase of such a huge amount of BTC tokens in that first quarter, Tesla went on to trim its bitcoin position by 10% within that quarter itself. However, this sale boosted that quarter’s earnings of Tesla by $272 million; after which, the company remained dormant with any buying and selling activities with its Bitcoin holdings until this year’s second quarter.