{"id":337525,"date":"2022-07-21T05:39:44","date_gmt":"2022-07-21T09:39:44","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=337525"},"modified":"2022-07-21T05:39:44","modified_gmt":"2022-07-21T09:39:44","slug":"tesla-dumped-75-of-its-bitcoin-holdings-amid-a-drop-in-profits","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/tesla-dumped-75-of-its-bitcoin-holdings-amid-a-drop-in-profits","title":{"rendered":"Tesla dumped 75% of its Bitcoin holdings amid a drop in profits"},"content":{"rendered":"

Leading electric car manufacturer Tesla has sold a large share of its Bitcoin holdings. The company’s financial statements released on July 20 show that it converted around 75% of its Bitcoin holdings into fiat currency.<\/p>\n

Tesla sells 75% of its Bitcoin holdings<\/h2>\n

Tesla’s quarterly filings<\/a> show that the company converted around two-thirds of its Bitcoin holdings to fiat, which generated an additional $936 million on its balance sheet. The financial statements show that the company’s net holdings were stable for three consecutive quarters.<\/p>\n

By the end of the first quarter of 2022, Tesla had digital assets worth $1.261 billion in its holdings. After the recent sale, the company now has $218 million invested in digital assets. This is not the first time Tesla has disposed of some of its Bitcoin holdings.<\/p>\n

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In March last year, Tesla sold off 10% of its Bitcoin reserves, making a net profit of $128 million. The CEO of the electric car manufacturer, Elon Musk, said that the sale of 10% of Tesla’s BTC holdings was to demonstrate the liquidity of the primary cryptocurrency. The sale was to prove the liquidity of Bitcoin as an alternative to holding fiat currency on a company’s balance sheet.<\/p>\n

Tesla was one of the largest Bitcoin corporate holders globally. In January this year, the electric car manufacturer acquired $1.5 billion of Bitcoin. The purchase of these new coins was disclosed in a filing with the US Securities and Exchange Commission (SEC).<\/p>\n

Early last year, Tesla had made plans to endorse Bitcoin payments. However, the plans were thwarted after Musk announced that there were concerns about the high energy demands of Bitcoin.<\/p>\n

The recent sale has only caused a slight dip in Bitcoin prices. On Wednesday, Bitcoin managed to gain to $24,000. At the time of writing, the coin was trading at $22,900 after a 3% dip in the past 24 hours.<\/p>\n

Tesla’s Q2 2022 financial results<\/h2>\n

The electric car manufacturer has reported a shaky second quarter of 2022. The company’s profits for the period dropped by 32% compared to the first quarter. Tesla’s net profits for Q2 2022 came in at $2.26 billion.<\/p>\n

Before these financial results were released, Musk had revealed<\/a> that he had a “super bad feeling” about the economy and that the company would be required to lay off around 10% of its workers. Tesla was among the companies affected by the global supply chain crisis and economic turbulence.<\/p>\n

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