New York: Bitcoin The rebound came after a brief sell-off late Wednesday, sparked by news from the electric carmaker Tesla Inc. sold its approximately 75% stake in Virtual Tokens.
Tesla Chief Executive Elon musk Cited concerns about its company’s “overall liquidity” as the reason for the sale.
The world’s largest cryptocurrency was up 1.04% at $23,494.57, after slipping 0.5% to $23,268.92 on the news.
Tesla sold $936 million worth of bitcoin in the second quarter, more than a year after the company bought the cryptocurrency for $1.5 billion at the peak of its massive growth and popularity.
Musk has been a vocal supporter of cryptocurrency, His statements on the future of crypto and revelations about his ownership of digital assets often drive the price of Dogecoin and Bitcoin.
On Tesla’s earnings call, Musk said the primary reason for sales was uncertainty about the lockdown due to COVID-19 in China, which has created production challenges for the company.
“It was important for us to maximize our cash position,” Musk said. “We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some judgment on bitcoin. It is just that we were concerned about the overall liquidity for the company.”
Musk said that Tesla did not sell any of its Dogecoin, a meme-based cryptocurrency he touted.
Tesla accepted bitcoin as payment for less than two months before halving in May 2021. Musk has said that the company may resume accepting bitcoin once it does due diligence on the amount of renewable energy needed to mine the currency.
Bitcoin has been in recovery mode so far this week, in line with the stock market, as investors appear more optimistic about the US Federal Reserve’s ability to rein in decades-high inflation.
Tesla Chief Executive Elon musk Cited concerns about its company’s “overall liquidity” as the reason for the sale.
The world’s largest cryptocurrency was up 1.04% at $23,494.57, after slipping 0.5% to $23,268.92 on the news.
Tesla sold $936 million worth of bitcoin in the second quarter, more than a year after the company bought the cryptocurrency for $1.5 billion at the peak of its massive growth and popularity.
Musk has been a vocal supporter of cryptocurrency, His statements on the future of crypto and revelations about his ownership of digital assets often drive the price of Dogecoin and Bitcoin.
On Tesla’s earnings call, Musk said the primary reason for sales was uncertainty about the lockdown due to COVID-19 in China, which has created production challenges for the company.
“It was important for us to maximize our cash position,” Musk said. “We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as some judgment on bitcoin. It is just that we were concerned about the overall liquidity for the company.”
Musk said that Tesla did not sell any of its Dogecoin, a meme-based cryptocurrency he touted.
Tesla accepted bitcoin as payment for less than two months before halving in May 2021. Musk has said that the company may resume accepting bitcoin once it does due diligence on the amount of renewable energy needed to mine the currency.
Bitcoin has been in recovery mode so far this week, in line with the stock market, as investors appear more optimistic about the US Federal Reserve’s ability to rein in decades-high inflation.