The love melodrama between Tesla and Bitcoin seems to be coming to an end. The American brand has sold 75% of its assets.
At their worst for a few months already, investors in cryptocurrencies could still hope that luck smiles on them with the loyalty of certain major players such as Tesla or the government of Bukele in El Salvador, a small country in Central America which has made Bitcoin its national currency.
But the first of the two names I just mentioned finally decided to leave the ship, seeing that the latter was sinking. It was while looking at the publication of the automaker’s accounts for the second quarter of the year that the small crypto world was taken aback.
Bitcoin was at its worst and Tesla is coming to finish the job
Tesla has decided to sell 75% of its holdings in cryptocurrencies, and therefore in Bitcoin. In total, the operation brought in nearly $1 billion for the Austin, Texas-based company. If this sale allowed Tesla to earn a lot of money, the brand still lost a few hundred million dollars in the case.
Indeed, she had bought Bitcoin for $1.5 billion in February 2021, when the market was growing. This beautiful momentum had pushed bitcoin up to $58,000, its highest value for the time. But at Tesla, everything can go very quickly. In May 2021, as the world raged over the climate consequences of cryptocurrencies, Tesla decided to remove the digital currency from its site, making it impossible to buy cars with Bitcoin.
Tesla and Bitcoins: it’s over
But then how can one explain the sale of Bitcoin in the assets of Tesla. The price of the cryptocurrency made them realize a loss, and the other figures present in the financial report of the brand for this quarter show that Tesla is living very well. The American firm even exceeded analysts’ expectations with more than $2 billion in profit.
But if the answer is not in Tesla’s figures, it is because it is better to look at those of Bitcoin itself. If for the moment the cryptocurrency is around 24,000 dollars, experts rather expect the market to stabilize below 20,000 dollars. A threshold that was his before the surge in the summer of 2021.
It is therefore with this in mind that Tesla decided to sell. The company knew it wouldn’t be able to see a payback for quite some time, so it found the market to be quite attractive around $25,000. But above all, the outlook did not really leave a choice to Tesla, which must fight against a shortage of materials and galloping inflation.
Note that Tesla’s Bitcoin sale was the only cryptocurrency sale made this quarter by the automaker. Owner of a large number of DogeCoin, the brand did not wish to part with it for the moment.