In the case of the cryptocurrency market plummeting, Tesla seems to be abandoning its bet on Bitcoin. Tesla said in a shareholder letter on Wednesday: “As of the end of the second quarter, we had converted approximately 75% of our Bitcoin purchases into fiat currency. This conversion added $936 million to our balance sheet. cash.”
Tesla disclosed in February 2021 that the company had invested $1.5 billion in Bitcoin and subsequently sold 10% of its Bitcoin holdings in April of that year. Tesla said Wednesday that the value of its digital assets has shrunk to $218 million, with the impairment of bitcoin hurting profitability in the second quarter. Bitcoin prices have retreated from their all-time high of nearly $69,000 in November but recovered earlier this week.
Tesla CEO Elon Musk has become a huge influencer in the cryptocurrency space. He lauded Dogecoin as an alternative on Twitter and posted a photo of his dog Floki, who is a Shiba Inu like Dogecoin’s mascot. In April, Tesla threw a big party for its new factory in Austin, and Dogecoin was also featured at the drone show at the time.
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