It seems like the crypto winter is affecting everyone as several tech companies start to scale back their plans in the cryptocurrency space.
Elon Musk’s Tesla is the latest company that decided to offload and sell 75% of its Bitcoin holding stocks.
The electric car maker sold the coins for $963 million and the value of its remaining “digital assets” is $218 million.
A year ago, the company bought crypto stock worth $1.5 billion, a move that shocked the crypto market and made Musk an instant billionaire.
Tesla executives state that the earnings will be used to reinvest back into the company’s liquidity.
“We are certainly open to increasing bitcoin holdings in future. So this should not be taken as some verdict on Bitcoin. It’s just that we were concerned about overall liquidity for the company given COVID shutdowns in China,” Tesla CFO Zachary Kirkhorn said.
With the remaining stock, Tesla is playing wait and see game, if the crypto winter persists the company is likely to dump it.
Leave a Reply