Tesla sold Bitcoin to prove cryptocurrency’s liquidity as an alternative to cash, says Elon Musk

Updated : April 27, 2021 11:51:38 IST

Tesla’s Chief Financial Officer Zachary Kirkhorn said on an earnings call that the company believed in Bitcoin’s long-term value.

Tesla’s earning reports show it sold some of its Bitcoin tokens after purchasing them for over $1 billion earlier in the year

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.

Even though Bitcoins price has fallen down from its peak in mid-April of $64,870, Tesla’s Chief Financial Officer Zachary Kirkhorn said on an earnings call that the company believed in Bitcoin’s long-term value.

Read here: Tesla posts $438 million Q1 profit on strong electric vehicle sales

Other cryptocurrencies like Dogecoin and Ethereum have also seen an increase in price, but nothing like Bitcoin’s 7-fold price hike over last year.

On Tuesday, Bitcoin was little changed at $53,851. The world's most popular cryptocurrency soared nearly 10 percent on Monday, after five straight days of losses, on reports that JPMorgan Chase is planning to offer a managed Bitcoin fund.

Bitcoin had slumped almost a fifth from its all-time high hit earlier this month.

Published : April 27, 2021 11:47 AM IST

Tesla sold Bitcoin to prove cryptocurrency’s liquidity as an alternative to cash, says Elon Musk

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