Elon Musk of Tesla Inc. has confirmed that he had invested in Bitcoin and holds Bitcoin holding. However, the investors have re-confirmed that he has never disposed of any single Bitcoin from his holding. But while speaking on behalf of his company he suggested that Tesla had invested in Bitcoin several times. After these acquisitions, from time to time, the company has in fact sold many of its Bitcoins.
The confirmation from Musk and Tesla came when Telsa had revealed its Q1 2021 earnings on 26th April 2021. Before the announcement, the spectators were expecting that the company would reveal that how much it had invested further into Bitcoin. But to their utter surprise, Musk revealed that after the company’s famous 1.5 Billion Dollar investment, several Bitcoins were in fact sold by Tesla.
Tesla’s CFO, Zachary Kirkhorn, stated on the occasion that during this Q1 period, the company had invested US$ 1.5 Billion in Bitcoin. The investment thereafter cut back Tesla’s position by almost 10% and resultantly only a small gain was witnessed in the Q1 earnings, said Kirkhorn.
Looking at Tesla’s Q1 balance sheet, it is evident that digital assets to the tune of US$1.331 Billion were brought into the balance. Against this entry, there was another entry that suggested that sale proceeds amounting to US$ 272 Million were also brought within.
Thereafter the news of Tesla disposing of its Bitcoin holding was noted by all concerned quarters. Within this time, many Tesla and Musk-inspired Bitcoiners were seen concerned.
One of Musk’s admirer, Dave Portnoy, who is a stock trader, also notified his concern in a tweet message. The stock trader suggested that he didn’t believe that Musk usually buys Bitcoin and when prices are up he then sells them. But Portnoy was duly responded by Musk himself who clarified that this was not the case. Musk categorically clarified to Portnoy that he never opted to sell any of his Bitcoin. In fact, he is keeping them for a long-term basis, said Musk.
But Musk also confirmed to the stock trader that his company however purchases and sells Bitcoins from time to time. Musk added further that at least 10% of Tesla’s Bitcoin holding has been sold after a US$ 1.5 Billion investment. Musk further claimed that the sale of Bitcoin was essentially critical in order for the company to prove ad determine Bitcoin’s liquidity.
In the meantime, Kirkhorn also explained that both he and Musk were of the view that they should invest extra money which is not in use. In addition, it was a joint decision of the company’s board to sell Bitcoins at the right time to earn a fair bit of profits. However, he suggested that the company still and always believes in the long-term holding of Bitcoins. He added that Bitcoin will continue to be promoted under the company’s policy and future strategy.
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