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Tesla's Musk Remains Open to Buying More Bitcoin After Selling in Q2 to Raise Cash

·1 min read
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Electric vehicle maker Tesla (TSLA) sold the majority of its bitcoin (BTC) holdings in the second quarter in order to boost its cash position given the uncertainty around COVID-19 lockdowns in China, CEO Elon Musk said during the company's earnings call Wednesday.

  • But Musk said Tesla is open to increasing its bitcoin holdings again in the future. He said the second-quarter sale "should not be taken as some verdict on bitcoin," emphasizing that "we were concerned about overall liquidity for the company given [COVID-19] shutdowns in China."

  • Tesla did not sell any of its dogecoin (DOGE) holdings, Musk also said during the conference call.

  • Tesla sold $936 million worth of bitcoin, or 75% of its holdings, during the quarter. It sold its bitcoin for an average price of around $29,000 per bitcoin, avoiding a substantial impairment charge by selling earlier in the quarter. Bitcoin ended the second quarter at a price of about $18,700.

  • The price of bitcoin initially fell about 1.7% to $23,300 following the release of Tesla's second-quarter earnings report, which contained news of the sale. But the price recovered after Musk's comments on the earnings call.