Elon Musk Says Tesla Could Buy Back Bitcoin After Selling $936 Million Worth
Tesla, an electric car company run by Elon Musk, sold the majority of its bitcoin holdings in the second quarter of 2022, which according to Musk was done in order to boost its cash position given the uncertainty around Covid lockdowns in China. He said this at the company’s earnings call on Wednesday.
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Despite selling majority of its Bitcoin asset to boost the company’s cash position, Musk is not dismissing the possibility of buying them back in the future. He said Tesla is open to increasing its bitcoin holdings again in the future and noted that the second-quarter sale, “should not be taken as some verdict on Bitcoin.”
According to Musk during the conference call, he emphasized that the sale was mainly “about overall liquidity for the company given Covid shutdowns in China.” He also mention that Tesla did not sell any of its Dogecoin holdings.
This is not the first time Tesla is selling a portion of its Bitcoin holdings since it began adding the asset class to its balance sheet. The EVM sold a portion of its BTC reserves in March 2021, realizing a net profit of $128 million.
At the time, CEO Elon Musk explained that the sale, which amounted to 10% of Tesla’s holdings, was to “prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”
Automotive gross margins were down compared with the first quarter and a year ago due to inflation and growing competition for electric vehicle components, such as battery cells.
Elon Musk Says Tesla Could Buy Back Bitcoin After Selling $936 Million Worth