Tesla sells 75% of its bitcoin holdings
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Electric car Company, Tesla (TSLA), has revealed that its Bitcoin stash for the third quarter (Q3) remained untouched, as the company did not sell any of its bitcoin holdings nor added any additional bitcoin in the third quarter.

This made the value of its crypto stash to remain at $218 million, the same as they were at the end of the second quarter.

Recall that Tesla shocked many investors by selling $936 million worth of bitcoin, or approximately 75% of its total holdings, in order to raise cash – Quarter 2.

Tesla also reported no impairment charges  in the value of its bitcoin holdings, as the price of the giant cryptocurrency remained almost the same at the end of both Q2 and Q3 – slightly under $20,000.

CEO Elon Musk gave the reason for the company’s second-quarter earnings call, that the sale was made due to “the uncertainty of the COVID lockdowns in China.”

However, he affirmed that Tesla is open to increasing its bitcoin stash in the future and that the sale “should not be taken as some verdict on bitcoin.”

That decision from Tesla dropped the price of Bitcoin with about 1.7%.

Tesla’s Bitcoin Saga

From $1.26 billion Bitcoin stash in the previous 3 quarters, Tesla ended the second quarter with just $218 million in bitcoin (BTC) after selling about 75percent.

Although the company said it saw a gain of $64 million on the sale of its holdings in the second quarter, which was offset by impairment charges of $170 million on the remainder of its bitcoin, resulting in a net cost of $106 million on its profit and loss (PnL) statement.

In February 2021, Tesla announced its purchase of 1.5billion worth of  bitcoin, a move that spiked the price of the later.

Moving to the first quarter, the company reduced its bitcoin position by a 10% sale, boosting the quarter’s earnings by $272 million.

Since then, the company had not bought or sold any more bitcoin until this year’s second quarter.

According to Coindesk, in Overall for the third quarter, Tesla reported adjusted earnings per share of $1.05, beating the consensus of analyst estimates reported to FactSet of $1.00 a share, on revenue of $21.45 billion, shy of a $21.98 billion estimate.

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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