In 2021, Tesla, under the tenure of Elon Musk, was touting the long-term potential of Bitcoin and made waves revealing a solid investment in that famous crypto. But alas, the price of the worldwide renowned high-volatile cryptocurrency bumped up to almost $70,000 in November 2021 before crashing.
As was already mentioned, in February 2021, the world-famous American multinational automotive and clean energy company under the leadership of Elon Musk invested its funds in Bitcoin. The sum of that investment comes to $1.5 billion. That rapid injection of money prompted a surge in demand for the most world popular decentralized digital currency. But despite such a great investment of capital in that crypto, later in 2021, Tesla stopped accepting Bitcoin as payment for its vehicles, citing concerns about the impact of energy-intensive Bitcoin mining on the climate.
The value of the cryptocurrency has plunged, falling by more than 50% in 2022. And on June 21, 2022, the world-famous American multinational automotive and clean energy company led by an eccentric genius offloaded 75% of its Bitcoin assets. It looks like Tesla dumped its crypto assets at fire-sale prices to get back her financial placements.
According to the official Tesla statement, the company bought $936m of traditional currency from Bitcoin sales.
Many people pin the blame for Bitcoin’s fall on the business magnate and investor Elon Musk because he is one of the most well-known passionate proponents of cryptocurrencies. And his provocative pronouncements on social media, especially on Twitter, often drive significant trading activity.
Musk stated that such a rapid sale of Bitcoin was premised on the uncertainty as to when the Covid lockdowns in China would alleviate. And this is the reason why Tesla decided to maximize its cash position.
The day after Tesla sold most of its Bitcoin assets, June 22, 2022, Bitcoin is trading for less than $24,000.