Elon Musk’s company Tesla recently shocked the cryptocurrency community by revealing that it had converted nearly 75% of its Bitcoin holdings into fiat money, adding $963 million to its income statement.
On the peer-to-peer bitcoin blockchain, you can transfer bitcoin, a decentralized digital currency. Bitcoin transactions are recorded and verified on the blockchain, a publicly accessible distributed database.
By adopting the alias Satoshi Nakamoto, an unidentified individual or group of individuals created the cryptocurrency in 2008.
The currency was introduced to use in 2009 when its execution became open-source software.
Did Elon Musk Make A Bitcoin Withdrawal Before Tesla Could Go Bankrupt?
Texas serves as the corporate headquarters of the American automotive and green energy business Tesla, Inc. Tesla creates and manufactures solar panels, solar roof tiles, e – mobility systems (electric cars and trucks), residential and grid-scale battery energy storage, and other associated goods and services.
With a market value of even more than US$760 billion, Tesla is one of the most valuable companies in the world and continues to be the most valuable automobile.
By capturing 16 percent of the plug-in industry (which includes plug-in hybrids) and 23 percent of the battery-electric (purely electric) market in 2020. The firm had the greatest worldwide sales of plug-in and battery-electric vehicles.
Tesla Energy produces and installs photovoltaic (PV) systems in the US. Tesla Energy is among the largest suppliers of battery energy storage systems, with 3.99 GWh deployed in 2021.
What’s The News About Bitcoin Withdrawal?
Tesla Inc. revealed in its profits for the three months ending in June 2022 that it has reduced its Bitcoin holding by one-fourth.
The company invested $1.5 billion in Bitcoin in February 2021 but lost 10% by April.
Tesla’s cryptocurrency holdings fell to $218 million due to the second-quarter Bitcoin impairment. The cryptocurrency market, which made big gains after the most recent increase, was affected by the revelation.
Tesla CEO Elon Musk said the company sold Bitcoin to maximize cash because of Covid uncertainty. He said that the transaction shouldn’t be seen as “a conclusion on Bitcoin.”
Despite the mercurial technocrat’s justification, the top cryptocurrency asset, which was trading at $24,200 on Wednesday, dropped more than 6% to a value of $22,700 on Thursday.
The currency was attempting to recover $23,000 at 13.30 hours IST on Thursday as its market cap dropped below $450 billion. Its volume dropped by around 9 percent to $43.25 billion, according to data from a source.
Elon Musk’s selling has impacted the cryptocurrency market because he has long been a fervent proponent of crypto assets. However, there is no denying that he has always preferred Dogecoin above Bitcoin.
The co-founder and CEO of Mudrex, Edul Patel, stated that his interest in Dogecoin is nothing new. Musk tweeted that Tesla hadn’t swapped Dogecoin stakes after the transaction, which could have altered its price.
Musk had previously criticized Bitcoin and pointed to the damaging effects of mining on the planet’s environment. Last year, his business stopped taking Bitcoin, although it still accepts Doge for the sale of goods.
Remember that across all types of investments in 2022, cryptocurrency experienced the worst return. Since reaching its own top of $67,800 in November 2021, Bitcoin’s value has decreased by around two-thirds.
Total crypto asset market value, which peaked at over $3.1 trillion, is now close to $1 trillion.
According to Sathvik Vishwanath, co-founder, and CEO of Unocoin, nothing about this situation should surprise anyone. “Investments are ultimately just a means of generating more wealth,”
Therefore, he continued, “when one realizes that it would be a loss-making venture, they do prefer to withdraw and re-enter at a later period.”