Tesla sells majority of Bitcoin after unprofitable crypto foray
BNN Bloomberg
Tesla sold a significant chunk of its stake in Bitcoin, an investment that helped legitimize the world’s largest electronic currency.
“As of the end of Q2, we have converted approximately 75 per cent of our Bitcoin purchases into fiat currency,” Tesla said in a shareholder letter Wednesday as part of the company’s earnings report. “Conversions in Q2 added US$936M of cash to our balance sheet.”
The electric-car manufacturer disclosed in February 2021 that it had invested US$1.5 billion in Bitcoin, and subsequently sold 10 per cent of its stake that April. Tesla said Wednesday its digital assets have shrunk to US$218 million, and that a Bitcoin impairment hurt second-quarter profitability.
Bitcoin has retreated from a record high of almost US$69,000 in November. The largest cryptocurrency by market value erased gains after the sales were disclosed, falling as much as US$1.6 per cent to US$22,928.
