Leading electric car manufacturer, Tesla, sold most of its Bitcoin holdings in Q2 of 2022 according to their recent earnings report. Tesla sold approximately 75% of its Bitcoin position, which translates to more than $936 million, but the company currently holds around $218 million worth of Bitcoin. Tesla’s quarterly statement explains:
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency.”
While the Bitcoin price reacted pretty quickly to the news and retraced by approximately 2%, it seems to have stabilized as of this writing. However, the community proceeded to share their opinions on Tesla’s decision.
The Bitcoin Community Is Ruthless
Some have pointed out that while Tesla has sold 75% of its Bitcoin holdings, they still hold the remaining 25%.
Others have stated possible future headlines on how Tesla missed a huge opportunity by selling.
And many have already dug into Elon Musk’s previous tweets showing that Tesla is far from committed to the “diamond hands” meme.
During the earnings call, Musk explained the reason for selling the company’s Bitcoin holdings was mainly due to the uncertainty in China’s COVID situation.
The reason we sold a bunch of our Bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate. It was important for us to maximize our cash position… This should not be taken as some verdict on Bitcoin.