Elon Musk’s Tesla Sold Most of Its Bitcoin, Is That A Big Deal?

Elon Musk and Bitcoin

Like you can make money on US Open picks, you can also make money by investing in bitcoin. There has been a lot of news coming out about cryptocurrency, but this seems to be the most impactful. Elon Musk has been one of the most influential celebrities as, according to Tesla’s Q2 earnings report, $936 million in cash was added to the report as a negative impairment. 

Compare that to the balance sheet indicating that it had $218 million in “digital assets, net” on June 30, and that is compared to the approximate $1.2 billion that has shown up in the previous three quarters. However, today we are going to dive in and discuss whether or not this should be considered a big deal.

Why Would Musk Sell Bitcoin?

There are many reasons Musk could have sold Tesla’s bitcoin, but the one I conclude with the most is that the fae is currently in a lawsuit against Twitter. This is due to the fact he was in place, and there was at least a verbal agreement to buy the social media platform, and now Musk is trying to back out.

Knowing how much there will be in legal fees and things of that nature (including the potential of either a buyout or a reduced price to buy the platform due to financial reports or things of that nature) and taking out a digital asset could be to protect himself from losing some net worth.

Another reason could be just the decline of Bitcoin with no end in sight. In 2022, Bitcoin has lost over $9,300 or 29 percent since this time last year. 

Tesla could have just sold to cover the costs of the business, or the owner wanted to have the extra cash in his pocket. This also can be just a way to begin turning away from depending on an extremely volatile market and have something that will hold its value more consistently over time.   

What Does This Mean?

Like you could make US Open Tennis predictions with Bitcoin, you could also buy Teslas. Tesla did stop accepting Bitcoin as a form of currency to purchase any Tesla product after two months of accepting it. 

However, Musk stated, “the reason we sold a bunch of our Bitcoin holdings was that uncertainty as to when the COVID lockdowns in China would alleviate, so it was important for us to maximize our cash position given the uncertainty of the COVID lockdowns in China.” 

So that means there is a chance to get more cash to purchase other things for the company. 

This is not as big of a deal as the majority of people are attempting to make because if this was liquid cash instead of the most famous cryptocurrency, the market has been in a huge downturn compared to the last 12 months. 

There is a great chance that this is nothing as Musk decided to approach the China aspect of it as the lockdowns in that country mean there could be delays and issues in the production and purchasing of Tesla and some accompanying products. 

Conclusion 

This is not that big of a deal as it is just a publicly traded business that has to disclose its balance sheet to the world, and there is a big change in one factor that most people have an opinion on cryptocurrency. 

This could have an extremely slight change in the price of Tesla since that is a huge amount of assets changing form, but this is getting blown a bit out of proportion. 

At the end of the day, guessing bitcoins worth is like making US Open predictions. You can be confident, but never be certain. 

What do you think? Does Tesla sell a large percentage of their Bitcoin mean it should be raising red flags for stockholders and potential stockholders? 

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