75% of the Bitcoin owned by Tesla was sold off according to the company’s Q2 2022 earnings report.
Elon Musk’s automobile maker supposedly chose to bolster cash reserves with the sale.
The move strengthened Tesla’s balance sheet with almost $1 billion at current market prices.
Billionaire Musk stressed that the sale does not represent the company’s verdict on BTC as an asset.
Elon cited COVID-19-related shutdowns in China as a primary reason for the decision.
The general crypto market remains above $1 trillion following the latest rally and BTC is above $22,000 despite the massive sell-off.
Binance CEO Changpeng Zhao reacted to social media sentiment about the news and said that Tesla’s BTC trade is a drop in the ocean.
Binance CEO Changpeng has tagged Tesla’s Bitcoin trade as a drop in the ocean as the electric car maker added fresh cash to its balance sheet by offloading 75% of its BTC holdings amid COVID-19 lockdowns in China.
Tesla released its Q2 2022 earnings reports this week and revealed an update on its BTC holdings. Elon’s company initially splurged the cash in February 2021 and scooped up about $1.5 billion worth of Bitcoin at the time.
The company added that BTC would become a payment method, a decision which was eventually overturned citing energy concerns.
According to the earnings report, Tesla has now sold 75% of its BTC. The trade was worth $936 million and the proceeds were added to the company’s cash holdings.
CEO Elon Musk stressed that the trade does not mean that Telsa has no faith in Bitcoin. Instead, Musk explained that the decision was born out of a need to strengthen the company’s cash reserves as COVID-19 lockdowns in China tighten.
Musk also said that Tesla could look to buy more BTC and increase crypto holdings in the future, but maintained that digital assets are not Tesla’s main focus.
$1 Billion Bitcoin Sell-Off Is No Big Deal Say CZ
Following the news, concerns erupted on social media over what the move represents for the top crypto. Changpeng Zhao, CEO of Binance, responded to comments and said such a sale is “a drop in the ocean”.
BTC trades above $22,000 at press time despite a 4% dip in the last 24 hours.