Summary:
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.
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.