Tesla has dumped 75% of its bitcoin holdings a year after touting long-term potential
Summary
Tesla, led by Elon Musk, confirmed that it purchased about $ 1.5 billion in bitcoin in January and expects to start accepting it as a payment in the future. Early last year, Tesla invested $1.5 billion in bitcoin, banking on what the electric car maker called the digital currencys "long-term potential." Its a rapid retreat for Tesla and CEO Elon Musk, who was a heavy crypto booster during last years runup, frequently tweeting about various digital currencies. "The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate so it was important for us to maximize our cash position," Musk said in an earnings call on Wednesday. Kirkhorn said at the time that the companys intent was "to hold what we have long term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles."
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