Yes! You read that right Tesla just sold its Bitcoin holdings. But before you panic and sell off what you have, you should know a few things. First of all, this sale was only 10% of their entire portfolio and was just to show the liquidity of Bitcoin. They wanted to show other companies that it is actually a great alternative to storing cash. Even Elon Musk tweeted about the same, clearing a lot of criticism regarding the sale.
No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
— Elon Musk (@elonmusk) April 26, 2021
The criticism regarding the sale
Twitter hasn’t been cutting much slack to Tesla or Elon Musk himself with their latest Bitcoin sale. Yes, it kind of spooks me a bit, too, but we need to understand that Elon has cleared it out why they did what they did. In fact, it shows that there is always a buyer of Bitcoin for every seller, which makes the asset highly liquid. One doesn’t have to worry about buying a Bitcoin and falling short of cash when he needs it.
Reports also suggest that Tesla has already re-purchased the Bitcoin, which means they didn’t do it to book profit. So, the statement made by Dave that says Tesla just wanted to pump BTC and sell it to profit for themselves is completely obliterated. I am not able to find the tweet that said they re-bought BTC, but I am sure that I saw it somewhere.
Tesla just sold its Bitcoin but is it really a bad thing. It doesn’t seem so as the idea behind the same didn’t seem unreal. They wanted to show Bitcoin’s liquidity as they did. What do you think about the same? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: All South Korean crypto exchanges to shut down warns regulator
