Tesla has sold most of its cryptocurrencies since buying $1.5 billion worth of Bitcoin in February 2021.
Since then, the value of Bitcoin has plummeted, down more than 50% this year.
The electric car company revealed that it sold $936 million (£782 million) worth of Bitcoin in the second quarter.
Tesla CEO Elon Musk cites concerns about the company’s “overall liquidity” as the reason for the sale.
In Tesla’s earnings announcement, Musk said the main reason for the sale was uncertainty over the Covid-19 lockdown in China, which created production challenges for the company.
“Maximizing the cash position was important to us,” Musk said.
“This should not be taken as a verdict on Bitcoin, as we are certainly open to increasing Bitcoin holdings in the future. We are only concerned with the overall liquidity of the company.”
Musk has been an outspoken supporter of cryptocurrencies for many years. His frequent announcements about the future of crypto and the disclosure of his digital assets often drive up the price of assets like Dogecoin and Bitcoin.
Digital currencies have recovered from their first depreciation following the news that Tesla has withdrawn from Bitcoin.
The world’s largest cryptocurrency rose 1.04% to $23,494.57 after falling 0.5% to $23,268.92.
Musk added that he did not sell Dogecoin, the meme-based cryptocurrency being advertised by Tesla.
Tesla accepted Bitcoin as payment for less than two months before it stopped in May 2021.
Mr. Musk said he could resume acceptance of Bitcoin after due diligence on the amount of renewable energy needed to mine the coin.
Source: Metro
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