Product Architect of Tesla, Elon Musk, has sold almost all of its Bitcoin into fiat currency. The news was released on Tuesday by Tesla’s Q2 2022 in a report that reads "As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency."
Bitcoin price fell about 1.7% following the news but it didn't take long until the CEO Elon Musk announced that Tesla is going to boost its bitcoin exposure in the future which resulted in Bitcoin regaining its losses.
Following the selloff the company gained an additional $936 million in cash for its balance sheet, as being noted “Conversions in Q2 added $936M of cash to our balance sheet.”
Musk said the reason behind the recent selloff is for the company to maximize its cash position, "given the uncertainty of the COVID lockdowns in China." He added, however, that Tesla is open to boosting its bitcoin exposure in the future, and "this should not be taken as some verdict on Bitcoin."
Two months prior to the recent news, Tesla became one of the largest corporations holding Bitcoin after it acquired $1.5 billion worth of BTC.
The fifty one year old millionaire has presumably developed a fondness for Dogecoin, which he thinks is better for transactions. Musk also added that Tesla had not sold any of its dogecoin.
The company stopped accepting Bitcoin for car payments last May due to environmental issues regarding Bitcoin mining. The CEO declared that Tesla may resume accepting Bitcoin again under the circumstance that the mining industry grants moving toward renewable energy.
This is meanwhile the Bitcoin Mining Council’s Q2 2022 report found that 59.5% of the mining industry runs on sustainable power, making it the fifth quarter in a row in which the figure has stood above 50%.