CZ underestimates Tesla’s sale of Bitcoin
— CZ 🔶 Binance (@cz_binance) July 21, 2022
Zhao has estimated that up to $100 billion worth of Bitcoin is traded every day.
Tesla sells Bitcoin
As reported by U.Today, the leading e-car manufacturer has announced that it sold almost all of its $936 million worth of Bitcoin in the second quarter of 2022, creating a wave of shockwaves in the cryptocurrency community. The company has sold its remaining 75% stake in cryptocurrencies.
During a conference call, Tesla CEO Elon Musk dismissed the cryptocurrency view as a “showpiece”. He also made it clear that the recent purchase was not a move by the company to give up Bitcoin, but simply that Tesla needed cash due to business difficulties stemming from the impact of the Covid-19 epidemic in China. The entrepreneur has not ruled out adding his company’s existing cryptocurrency headquarters in the future despite climate-related concerns.
“It’s important for us to maximize our cash position,” Musk said.
Before this news, the price of Bitcoin quickly dropped below $23,000. The e-car maker’s U-turn broke a bitcoin story ahead of the adoption of the company’s model. After Tesla made the decision to add Bitcoin to its balance sheet in early 2021, the community believes that other large companies, such as Facebook or Apple, will do the same. However, the adoption of the cryptocurrency company model does not come to a final conclusion. With Tesla denying responsibility, other big names are also unlikely to make Bitcoin part of their corporate budgets. Some Bitcoin enthusiasts have seen potential opportunities. Since Tesla’s holdings of cryptocurrencies have dropped dramatically, the company’s CEO won’t be able to easily impact the price of the largest cryptocurrency.