Electric vehicle giant Tesla has released nearly $1 billion of bitcoin into the market amid ongoing crypto turbulence but CEO Elon Musk said not to view the move as a verdict on the token.
As of the end of the second quarter, Tesla converted 75 percent of its bitcoin purchases into fiat currency, according to its latest earnings report, which added $936 million of cash on the electric vehicle company’s balance sheet. According to Tesla CEO Elon Musk, the sale was made in order to maximize cash positions to deal with Covid-related uncertainty.
While Tesla’s digital asset holdings shrunk to $218 million with an impairment to second quarter profitability from bitcoin price movements, Musk noted that the crypto sale should not be seen as «some verdict» on the top cryptocurrency.
Tesla is the latest player to make pullbacks from the crypto market, once briefly accepting bitcoins for purchases before citing mining-related environmental concerns for a suspension of the payment option. From a high of nearly $69,000 in November last year, bitcoin has plunged to around $23,000.
