Elon Musk explained the reason for Tesla’s Bitcoin sale

Elon Musk Tesla Bitcoin Sale

This Wednesday (20), Tesla sold 75% of its Bitcoin reserves, equivalent to almost a billion dollars. Hours later, the CEO of the company, Elon Musk, told the reasons for the sale and what he thinks about bitcoin.

For the richest man in the world, cryptocurrencies are a “show apart”, however, he was open to investing in Bitcoin again in the future, stating that the sale “is not a verdict”.

Although Bitcoin was showing a strong price recovery, the news ended up cooling the market, causing the cryptocurrency to drop 7% in the last 24 hours. In any case, many believe that the fall was small for the magnitude of the news, maintaining optimism.

Elon Musk Talks About Tesla’s BTC Sale

Surprising everyone this Wednesday (20), Tesla announced the sale of 75% of its position in Bitcoin, having converted the amount into dollars during the second quarter of 2022. Hours later, in a conference call, Elon Musk explained the reason for the sale.

“We were just concerned about the overall liquidity of the company due to the closures in China.”

Going further, he also stated that cryptocurrencies are a “show apart” and that this topic is not the real focus of Tesla, today the largest electric car manufacturer in the world.

“The fundamental goal of Tesla and the reason why we are doing this, which is my main motivation here, is that sustainable energy comes first. This is our goal. We’re not that focused on crypto,” Elon Musk said after Tesla’s Bitcoin sale.

Tesla may buy Bitcoin again in the future

In any case, the billionaire made it clear that the sale was not the end of this story between Tesla and Bitcoin. Therefore, it is possible that the company will shake the price of Bitcoin again in the future.

“We are certainly open to increasing our bitcoin holdings in the future, so this should not be taken as a verdict on bitcoin.”

Elon Musk

In addition to Bitcoin growing as an alternative to gold as a store of value, another major reason for his speech may have been market liquidity. After all, Tesla should have had no problem selling almost a billion dollars in Bitcoin, that is, it is a positive point for the asset.