Elon Musk said his company Tesla sold Bitcoin to "prove liquidity of Bitcoin as an alternative to holding cash on the balance sheet."
Tesla's recently released earning reports showed that it sold some of its Bitcoin tokens after purchasing them for over $1 billion earlier in the year. The sale of BTC tokens netted Tesla $101 million.
Musk also added that he had not sold any of his personal Bitcoin holdings. The explanation came as a Twitter user implied that Musk might have been engaged in a soft "pump and dump" scheme with Bitcoin.
No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
— Elon Musk (@elonmusk) April 26, 2021
Replying to the user, Musk explained that Tesla sold 10 percent of its Bitcoin to demonstrate the cryptocurrency’s liquidity.
Tesla had earlier this year announced that the company would be buying over $1 billion worth of Bitcoin and that it would also soon start accepting payment for Tesla cars in Bitcoin. The announcement had sent the price of Bitcoin rallying higher.