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Tesla Just Sold A Big Chunk Of Bitcoin

Tesla’s Bitcoin (BTC) gambit may have paid off. Tesla just sold a hefty part of Bitcoin from its treasury

Earlier this year, Tesla purchased $1.5 billion worth of Bitcoin and launched its program to sell its vehicles using cryptocurrency.

As of now, the Elon Musk-led corporation is ready to cash in on some of the bitcoins it has earned; selling some ten percent of its Bitcoin to increase Q1 revenues by $101 million, as the BBC reports.

Tesla’s chief financial officer, Zachary Kirkhorn, informed investors that,

“It is our intent to hold what we have long term and continue to accumulate Bitcoin from transactions from our customers as they purchase vehicles.”

Elon Musk tweeted last Monday that,

“Tesla sold 10 percent of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”

Musk further explained he did not sell any of his personal stash of Bitcoin.

While the value of Bitcoin has rallied so far this year; the cryptocurrency endured a memorable roller coaster ride last week, diving to below $50,000 for the first time in months.

As of this week, it’s trading over $54,000 again after hitting a peak of almost $64,870 in mid-April.

Tesla’s CEO Sending a Hint To Investors

Tesla sold bitcoin

Musk seems to be sending a signal to investors saying that Bitcoins aren’t just speculative investments and can be used in a similar way to cash, as Bloomberg points out.

Whether or not that strategy will work out; in the long term is anybody’s guess — but the firm is in relatively good shape. Tesla has had a solid first quarter, with the Bitcoin sale bolstering solid sales.

Earnings also took a significant hit from a $299 million payment that went out to Musk as part of a healthy (to say the least) compensation package.

Although more difficult days are ahead, a global microchip shortage likely to slow production substantially.

The deficit caused Tesla “insane difficulties,” as Musk claimed, who discussed this week’s quarterly earnings call.

“We’ve had some of the most difficult supply-chain challenges that we’ve ever experienced in the life of Tesla,” he stated during Monday’s call.

Interestingly, Tesla’s Bitcoin gambit appears to have paid off, providing the carmaker with some much-needed liquidity in times of need. Though if that will be the case later this year as well as anybody’s assumption.

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