Elon Musk announces Tesla sold Bitcoin to establish liquidity as a cash alternative. The news comes as the company sells some of its cryptocurrency earlier, raising eyebrows.
Tesla sells 10% of its Bitcoin possession. The move is to prove the cryptocurrency’s liquid state as an alternative to keeping cash on the balance sheet, CEO Elon Musk tweets.
The low-key announcement by Musk
Here’s the tweet exchange on Twitter among Portnoy and Musk which led to the announcement.
Consequently, in reply to Portnoy’s question, if he was “reading this correctly.” That Musk “gets #bitcoin. Then he elevates it. It goes up. Then he drops it and earns a fortune.”
In response, the Tesla CEO tweeted, “No, you do not. I did not sell any of my Bitcoin. Tesla sold 10 percent of its particular holdings essentially to show the liquidity of Bitcoin.”
This decision is said to be an option to holding paper money on the balance sheet.
No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
— Elon Musk (@elonmusk) April 26, 2021
The origin of the announcement
Elon Musk announced Tesla had traded 10 percent of its Bitcoin holdings to show the cryptocurrency’s liquidity upon the balance sheet. Consequently, this is to retain his Bitcoin investment.
The Tesla and SpaceX CEO replied to a tweet by Barstool Sports originator Dave Portnoy.
Accordingly, he questioned Musk’s sale of Bitcoins and stated that he had bought the cryptocurrency and produced a fortune by selling it at a higher price.
After Tesla stated in its first-quarter earnings release on Monday, Portnoy’s tweet looked that it had sold $272 million (roughly Rs. 2,030 crores) value of its Bitcoin holdings.
History about crypto investment by Tesla
Elon Musk has remained a big supporter of Bitcoin and even Dogecoin.
Time and over, his tweets have given the value of these two cryptocurrencies rising.
Although in February, a series of tweets by Musk, signaling Dogecoin, took advantage of the meme-based cryptocurrency to excessive levels.
You can now buy a Tesla with Bitcoin
— Elon Musk (@elonmusk) March 24, 2021
Consequently, in March, the cost of Bitcoin soared to a then all-time high of $60,000 (roughly Rs. 45 lakhs). This revelation comes after he declared that Tesla would accept cryptocurrency as a mode of payout.
A month before, in February, the firm had also spent $1.5 billion in Bitcoin. Consequently, before that, in January, the cost of Bitcoin surged after Musk attached the hashtag #bitcoin to his Twitter bio.
Additionally, he transmitted out a cryptic tweet, saying, “In hindsight, it was inevitable.”
Does the trend continue
However, of late, the value of both these cryptocurrencies has fallen. On Tuesday, the cost of Bitcoin was $53,474.20. The cryptocurrency had singled an all-time increment of $64,804.72 on April 9.
Likewise, Dogecoin’s crash started on April 21, a day after the cryptocurrency fans honored Doge Day.
Consequently, Dogecoin’s price was proximate $0.266308. On April 16, the cryptocurrency amount rose to an all-time high of $0.45 (roughly Rs. 35).
Image courtesy of Cointelegraph News/YouTube