Cryptocurrency industry experts are largely unaffected by the decision to sell 75% of Tesla’s Bitcoin (BTC), a fairly typical strategy for companies to improve cash flow during a slowdown. It states that.
Electric car maker Tesla has announced that it has sold 75% of its Bitcoin holdings in the second quarter and added $ 936 million in fiat currency to its balance sheet.
Tesla CEO Elon Musk said the sale “should not be taken as a valuation for Bitcoin” and responded to liquidity concerns due to continued lockdowns in China in a conference call. did.
「The reason we sold a lot of Bitcoin we own was because it was unclear when the Covid lockdown in China would be eased.Therefore, it was important to maximize the cash position.“.
“It is certain that we are open to increasing Bitcoin holdings in the future.”
When asked by investors at a financial results briefing whether Bitcoin is a long-term asset, Mr. Musk said that Bitcoin is a “secondary” in Tesla’s main goal of “accelerating the emergence of stable energy.” It’s a kind of thing. “
“Cryptocurrencies don’t spend much of our thoughts,” Musk said.
Marcus Thielen, chief investment officer of Singapore’s digital asset management firm IDEG, told Cointelegraph that Tesla sold Bitcoin because it was “considered to be away from its core business.”
“If Bitcoin is stable, it wouldn’t be surprising if Tesla would continue to own Bitcoin, but if not, it would sell 100%.”
Kylie Purcell, a stock trading expert at the comparison site Finder, explains that Tesla wasn’t the only one to make the decision to “raise capital with cash.”
「It’s not uncommon for investors and businesses to move money from volatile assets to fiat currencies as the world heads into recession and thus recession.I point out.
Bitcoin prices have fallen after Tesla’s announcement, but there are already signs of recovery, he added.
Bitcoin prices have fallen about 2.6% following Tesla’s announcement and have returned to $ 23,299 at the time of writing. This is close to the highs a month ago, suggesting that the crypto community may not have been so upset about the announcement.
A calm reaction to the sale was announced in February last year that Tesla had a $ 1.5 billion BTC and plans to accept Bitcoin as a payment method for its products (although it was later withdrawn). Was developed in a different way.
At that time, in response to Tesla news, Bitcoin prices quickly jumped by nearly $ 3,000, and cryptocurrencies surpassed $ 43,000, hitting a record high at the time.
Tommy Honan, Head of Strategic Partnerships at Swyftx, told Cointelegraph that last year’s decision to buy Tesla’s Bitcoin was “the most important moment imaginable for digital assets.”
“It’s almost like giving other companies permission to put cryptocurrencies on their balance sheets, and from that point on, many large institutional investors and SMEs flooded the market.”
“Mass said the sale wasn’t a valuation of Bitcoin, it was just a cash flow, and the market seemed to believe his words. Bitcoin prices have been stable over the last 24 hours, especially now. Given the price of Bitcoin, it would be surprising if other big investors followed suit, “he said.
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