Elon Musk’s Tesla Still Holds $222M in Digital Assets After Dumping $936M in Bitcoin

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Despite the pan­ic last week over Tes­la announc­ing that it sold 75% of its Bit­coin, the com­pa­ny reports hold­ing $222 mil­lion worth of “dig­i­tal assets” on its bal­ance sheet as of the end of June.

The new details were in the company’s quar­ter­ly report, which it filed with the U.S. Secu­ri­ties and Exchange Com­mis­sion on Mon­day morning. 

It’s usu­al­ly the case that a com­pa­ny will put out a press release and host an earn­ings call a few days before sub­mit­ting its full earn­ings report with the SEC. That’s why the news about Tes­la sell­ing 75%, or $936 mil­lion, worth of Bit­coin on Wednes­day was out before the com­pa­ny had released more details.

Tes­la CEO Elon Musk went on to say dur­ing the company’s earn­ing call on Wednes­day that the com­pa­ny sold its Bit­coin to free up cash as COVID lock­downs con­tin­ue in China.

“The rea­son we sold a bunch of our Bit­coin hold­ings was that we were uncer­tain when the COVID lock­downs in Chi­na would alle­vi­ate,” Musk said on last week’s call. “So it was impor­tant for us to max­i­mize our cash posi­tion, giv­en the uncer­tain­ty of COVID lock­downs in China.”

Bit­coin lost 2.5% from its share price in the hour after the announce­ment, drop­ping to $23,078.18 on Wednes­day. On Mon­day after­noon, the world’s largest cryp­tocur­ren­cy by mar­ket cap­i­tal­iza­tion had slipped fur­ther and was trad­ing at $21,969.29 per BTC, accord­ing to CoinMarketCap.

Mean­while, it seems Tesla’s share­hold­ers liked the news about the com­pa­ny sell­ing a huge por­tion of its Bit­coin. TSLA shares went from $742.50 at mar­ket close on Wednes­day, ahead of the announce­ment, and have increased 9% to $812.16 as of Mon­day after­noon. That’s the high­est TSLA shares have been since ear­ly May, accord­ing to Yahoo Finance.

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