Tesla recently announced its Q2 earnings report, where it was revealed that it had sold 75% of its BTC holdings. This was negative news for the market, and the market also fell a bit. However, Binance CEO CZ Zhao believes that Elon Musk selling their Bitcoins doesn’t mean much for the asset. The same is the case if they buy the asset as well. Bitcoin is supposed to be bigger than one person, authority, government, or nation. So, Zhao’s statement makes complete sense here.
Tesla selling its Bitcoin
In Feb 2021, Tesla first announced that they had invested $1.5 billion in Bitcoin. This was such massive news that the price of BTC rallied past $40k to new highs. After a while, the company also announced that it would be accepting Bitcoin for payments. This was another major step forward in the widespread adoption of Bitcoin. However, all this positive steps didn’t continue for long.
Firstly, Tesla discontinued accepting Bitcoin, citing environmental reasons and that they are an EV company and cannot have such a large carbon footprint. It also promised to start the option again once Bitcoin mining surpasses 50% renewable energy use. However, that never happened.
After this, Tesla sold most of its Bitcoin, even though after the first Bitcoin crash in May 2021, Elon tweeted that Tesla has diamond hands. This shows you cannot take a company or a person’s word for granted. Elon said that the bad market conditions pushed them to sell their Bitcoin and have more cash at hand. Still, many think that there could have been other solutions.
Binance CEO comments on selling Bitcoin
CZ Zhao that he has sold less than 1% of his total Bitcoin holdings till now. He continues to hodl to show his belief in cryptocurrency. Zhao also said that he doesn’t hold any fiat currency and has his entire wealth in crypto. Now, this can be viewed in two ways. First is the fact that it shows his huge trust in crypto assets, and secondly, that he is taking too much risk.
What are your thoughts as Binance CEO thinks Elon Musk selling their Bitcoins doesn’t mean much? And do you think Tesla just made an excuse to dump their holdings? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Read Now: Twitter reports spending $33 million on Musk’s acquisition deal in Q2 2022.