Elon Musk, founder and CEO of Tesla, explained in a tweet that Tesla had not sold any of its Bitcoins to end all speculations about his company’s position on Bitcoin.
“To clarify speculation, Tesla has not sold any Bitcoin,” the Starlink and SpaceX founder said in a tweet on May 17.
To clarify speculation, Tesla has not sold any Bitcoin— Elon Musk (@elonmusk) May 17, 2021
Tesla had announced in early February that it would start accepting Bitcoin as payments for its cars. The announcement which came along with Tesla’s SEC filings that revealed the company had bought $1.5 billion of Bitcoin boosted the price of the largest cryptocurrency by a significant margin. Musk has often been called the foremost advocate of cryptocurrencies in the world.
But his relationship with Bitcoin and Dogecoin has been tumultuous of late.
Tesla had recently sold 10 percent of its Bitcoin holdings, “to prove liquidity” according to Musk himself. The sale had earned Tesla $101 million. Even as Tesla’s Chief Financial Officer Zachary Kirkhorn said on an earnings call that the company believed in Bitcoin’s long-term value, many accused Musk of encouraging high speculative prices of Bitcoin before selling out.
However, the recent trouble with Bitcoin came when Musk announced that Tesla would stop accepting Bitcoin payments for its cars due to environmental concerns regarding Bitcoin mining. Musk said that, “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.”
“Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy,” he added.
But that has done nothing to calm many people who are angry at Musk for “manipulating the market”. As the Twitter user Bitcoin Archive posted, “Bitcoin is down 20% since @ElonMusk started shitposting. And you wonder why some people are mad?”
Bitcoin is down 20% since @ElonMusk started shitposting.And you wonder why some people are mad? 🤔 pic.twitter.com/WDMvcptFsK— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 16, 2021
It was this tweet that Musk had replied to.
Musk’s actions haven’t only affected Bitcoin. After calling the meme-cryptocurrency Dogecoin, a currency where he had a large influence in raising its value over time, “a hustle”, the cryptocurrency’s value fell by over 40 percent. But days later, Musk was asking his millions of Twitter followers whether Tesla should accept Dogecoin as payment for Tesla cars.